New Delhi: The Reserve Bank of India (RBI) has recently allowed banks to increase the charges on Automated Teller Machines (ATMs) to Rs 21 per transaction. Bank may levy charges on the customer’s account if the customer attempts to withdraw funds in excess of the amount available in his account These revised rates will be effective from January 1, 2022.
Customers can do 5 free transactions every month from their bank’s ATMs. This includes both financial and non-financial transactions. In case of more than 5 withdrawals, they will have to pay an additional amount of Rs 20 for each ATM transaction. For customers using ATMs of other banks to withdraw cash, 3 free ATM transactions are allowed in metro cities and 5 in non-metro cities.
The new rules for interchange fees will come into effect from August 1.
In June 2019, RBI had constituted a committee to review ATM charges with a special focus on the interchange structure of ATM transactions. RBI increased the interchange fee from Rs 15 to Rs 17 per financial transaction for ATM transactions and from Rs 5 to Rs 6 for non-financial transactions. The new rates will be applicable from August 1, 2021. According to RBI, interchange fee is a fee charged by banks to merchants processing payments through credit cards or debit cards.
– SBI also changed the service charge
State Bank of India (SBI) recently revised the service charges for cash withdrawal from its ATMs and bank branches in early July. SBI has implemented new rules for BSBD account holders.
According to SBI, customers with BSBD account will now be able to withdraw money from branches and ATMs only up to four times without any service charge. After this, if a customer withdraws money from an ATM or branch, then he will have to pay Rs 15 plus GST on every transaction as service charge. The same rule will be applicable for withdrawing money from any ATM other than SBI.
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