If you use your ATM card a lot, this news is for you. Now withdrawing cash from ATMs as well as charges for debit/credit cards are going to be hiked.
As per the information, if customers withdraw money more than the prescribed limit from the ATM, banks may impose more charges on the transactions. RBI has recently approved a proposal for banks to increase the charge on ATMs to Rs 21 per transaction. These new rates will be applicable from January 1, 2022.
Notably, customers get five free transactions every month from the bank's ATM. This includes financial and non-financial transactions. In case of more, customers have to pay charges. For this, now an additional amount of Rs 20 will have to be paid per transaction. It is also important to know that for customers using ATMs of other banks to withdraw cash, there is a discount of three free transactions in metro cities and five in non-metro cities.
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. These 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.
State Bank of India (SBI) has recently revised the service charges for withdrawing cash from its ATMs and bank branches in early July. Under this, many charges have been increased. According to SBI, BSBD account holders will now be able to withdraw money from branches and ATMs only up to four times without any service charge.
If a customer withdraws money from ATM or branches more than this, then he will have to pay Rs 15 as service charge plus GST for every transaction. The same rule will be applicable for withdrawing money from any ATM other than SBI.
Similarly, ICICI Bank has issued a notice on its revised limits of cash transactions, ATM interchange, and chequebook charges to come into effect from August 1. The revision in the limits of Cash Transaction Charges will be according to the account types.
