New Delhi: - The Reserve Bank of India (RBI) has recently allowed banks to increase the charge on Automated Teller Machines (ATMs) to Rs 21 per transaction. - Bank may levy the charges on the customer's account if the customer tries to withdraw more money than is 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 withdrawls, they will have to pay an additional amount of Rs 20 for every ATM transaction. - 3 free ATM transactions are allowed in metro cities and 5 in non-metro cities for customers using ATMs of other banks to withdraw cash.
- New rules for interchange fees will be applicable 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 for ATM transactions from Rs 15 to Rs 17 per financial transaction and from Rs 5 to Rs 6 for non-financial transactions. - The new rates will be applicable from August 1, 2021. According to RBI, an interchange fee is a fee charged by banks to merchants processing payments through credit cards or debit cards.
- SBI has also changed the service charge
- State Bank of India (SBI) has recently revised the service charges for withdrawing cash from its ATMs and bank branches in early July. - SBI has implemented new rules for BSBD account holders.
- According to SBI, customers with a 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 for every transaction as a service charge. - The same rule will be applicable for withdrawing money from any ATM other than SBI.