RBI Alert! Banks will increase ATM cash withdrawal, debit card, credit card charges
RBI Alert: Are you a debit card or credit card user or do you frequently withdraw cash from ATMs? If yes, then this news is for you.
The Reserve Bank of India (RBI) recently increased the interchange fee and allowed banks – private and public – to withdraw cash from ATMs as well as increase charges for debit cards and credit cards. RBI has allowed banks to increase the charges on Automated Teller Machines (ATMs) to Rs 21 per transaction. Lenders can charge customers within this limit, once they have exhausted their free ATM withdrawals.
The amendment will be effective from January 1, 2022, the Reserve Bank of India said.
Notably, customers are eligible for five free transactions per month including both financial and non-financial transactions from their own bank ATMs. After the expiry of this limit, users will have to pay an additional amount of ₹21 for each ATM transaction, which will be increased from January 1, 2022.
For those using other bank’s ATMs for cash, three free ATM transactions are allowed in metro cities and five in non-metro centres.
“In order to compensate banks for higher interchange charges and in view of the general increase in cost, they are permitted to increase the customer charges to ₹21 per transaction. This increase will be effective from January 1, 2022,” RBI said in a statement. ” .
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The regulator has hiked the charges for ATM transactions after almost seven years.
“It is also observed that the last change in the interchange fee structure for ATM transactions was done in August 2012, while the charges payable by the customers were last revised in August 2014. Thus, the last change in these charges was done in August 2012. A lot of time has passed since then,” RBI said. in a notification.
RBI has increased the interchange fee for financial transactions from ₹15 to ₹17, while for non-financial transactions from ₹5 to ₹6. The new rates will be applicable from August 1, 2021.
An interchange fee is charged by banks to the merchant who processes the payment by credit card or debit card, as per RBI. “Applicable tax, if any, shall be payable additionally,” RBI said.
New SBI ATM Cash Withdrawal, Check Book Charges
Recently, State Bank of India (SBI) has amended the rules and service charges for cash withdrawal from its ATMs and bank branches with effect from early July. SBI has implemented new rules for BSBD account holders. There are four free cash withdrawals available to BSBD account holders – including ATMs and bank branches – every month.
The bank now charges ₹15 plus GST for every transaction over and above the free limit. Charges on cash withdrawal are applicable at domestic branches and ATMs and non-SBI ATMs.
New ICICI Bank ATM cash withdrawal, checkbook charges from August
ICICI Bank has also issued a notice on the revised limits on cash transaction, ATM interchange and checkbook charges with effect from August 1. The revision in the limit of cash transaction fee will be applicable for domestic savings account holders including salary accounts. .
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