New Delhi8 minutes ago
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Based on the recommendations of the committee constituted in June 2019, the charges related to ATM transactions have been changed. -symboliki photo
The Reserve Bank of India (RBI) has changed the rules related to ATM transactions. Now all banks will be able to increase the interchange charge of their ATM transactions. After this change, banks will be able to reduce the non-financial transaction charge from Rs 5 to Rs 6 and the financial transaction charge from Rs 15 to 17. However, interchange charges are not levied from the customers. The rules related to interchange transactions have changed after 9 years. These new rules will come into effect from 1 August 2021.
Will continue to get 5 free transactions
RBI has said that even after the change in the rules, customers will continue to get the facility of 5 free transactions at their bank’s ATM. This includes both financial and non-financial transactions. Apart from this, bank customers will continue to get the facility of free transactions at other bank’s ATMs as well. At present, bank customers get 3 transactions free in metro cities and 5 transactions in non-metro cities at other bank’s ATMs.
Cash withdrawal after free transaction will cost Rs 21
Banks currently charge Rs 20 per transaction from customers on cash withdrawals after free transactions. It does not include taxes. RBI has said that due to higher interchange fees, banks will be able to increase the charges charged to customers after free transactions to compensate for the cost. According to RBI, after the free transaction, banks will be able to charge Rs 21 from their customers instead of 20 per transaction. It does not include taxes. This rule will come into effect from January 1, 2022. The charge on cash withdrawal from ATMs has been increased after about 7 years.
Rules related to interchange charge were changed in 2012
Earlier, RBI had changed the rules related to interchange charge for ATM transactions in 2012. Whereas the ATM transaction charge charged from customers was changed in August 2014. RBI had constituted a committee in June 2019 to change the charges related to ATM transactions. On the basis of the recommendations of this committee, now approval has been given to increase the ATM transaction charges.