ATM cash withdrawal, debit card, credit card fees to change from August 1: check details
New Delhi: The Reserve Bank of India (RBI) recently increased interchange fees and allowed banks – private and public – to increase ATM cash withdrawal fees as well as debit and credit card fees.
From August 1, the interchange fees that banks can charge on automated teller machines (ATMs) will see an increase of 2 rupees following the order of the Reserve Bank of India (RBI). In June, the central bank raised the interchange fee from Rs 15 to Rs 17, while for non-financial transactions the fee increased from Rs 5 to Rs 6.
These fees are charged by banks to customers who process credit or debit card payments. Under new RBI guidelines, customers will be entitled to five free transactions each month from their home bank’s ATMs. Additionally, the RBI said customers can also claim free transactions at other banks’ ATMs, which include three withdrawals in subways and five in non-metropolitan cities.
The changes were announced based on suggestions from a committee set up by the RBI in June 2019 with a particular focus on the exchange structure for ATM transactions.
The central bank had said that these fees could be increased due to the increasing cost of deploying ATMs and the expense of maintaining ATMs incurred by banks. The PTI news agency reported that as of March 31, there were 115,605 on-site ATMs and 97,970 off-site ATMs in the country and around 900 million debit cards issued by different banks.
SBI ATM fees
The State Bank of India (SBI) recently revised the service fee for withdrawing cash from its ATMs and bank branches in early July. For Basic Savings Bank Deposit Accounts (BSBD) or SBI BSBD Accounts, fees will be recovered beyond 4 free cash withdrawal transactions including ATM and branch. Other than that, SBI account holders will be exempt from any charges on the first 10 check sheets only. Checks beyond this limit will be subject to a fee that will take effect from July 1, 2021.
ICICI Bank ATM Fee
ICICI Bank has published an advisory on its revised limits on cash transactions, ATM trading and checkbook fees. The revised fees will apply to holders of national savings accounts, including payroll accounts, and take effect on August 1.