If you use your ATM card a lot, this news is for you. From now on, cash withdrawals at ATMs as well as fees for debit / credit cards will be increased.
According to reports, if customers withdraw money beyond the prescribed limit at the ATM, banks may impose additional fees on transactions. RBI recently approved a proposal for banks to increase fees on ATMs to Rs 21 per transaction. These new prices will be applicable from January 1, 2022.
In particular, customers benefit from five free transactions each month at the bank’s automatic teller machine. This includes financial and non-financial transactions. In case of more, customers have to pay a fee. 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 money, there is a discount of three free transactions in metropolitan cities and five in non-metropolitan cities.
RBI has increased the interchange fees 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 fees are fees charged by banks to merchants processing payments by credit or debit cards.
The State Bank of India (SBI) recently revised the service fee for withdrawing cash from its ATMs and bank branches in early July. By virtue of this, many charges have been increased. According to SBI, BSBD account holders will now only be able to withdraw money from branches and ATMs up to four times without a service charge. If a customer withdraws money from ATMs or branches more than that, then they will have to pay Rs 15 as a service charge plus GST for each transaction. The same rule will apply to withdraw money from any ATM other than SBI.
Likewise, ICICI Bank has published an advisory on its revised limits on cash transactions, ATM trading and checkbook fees which will come into effect on August 1. The revised cash transaction fee limits will depend on account types.