ATM, debit and credit card fees to increase soon
The Reserve Bank of India (RBI) recently increased the interchange fees that banks can charge on ATM transactions. The interchange fee for financial transactions has increased from ₹15 to ₹17, while for non-financial transactions the increase is ₹5 to ₹6. The new prices will be applicable from August 1, 2021.
According to RBI, an interchange fee is a commission charged by banks to merchants processing credit or debit card payments. These fees have been a bone of contention between banks and ATM rollout companies.
Changes to the rules for withdrawing cash from ATMs
RBI also said customers are entitled to five free transactions, including financial and non-financial transactions, each month from their own ATMs. They are also eligible for free transactions from other ATMs, which include three transactions in subways and five in non-metros.
Beyond free transactions, the ceiling for customer fees is ₹20 per transaction at present, which will be increased to ₹21 from January 1, 2022. “To compensate banks for the higher interchange fee and in view of the general escalation in costs, they are allowed to increase customer fees to ₹21 per transaction. This increase will take effect on January 1, 2022, “the RBI said in a statement.
New ICICI Bank ATM cash withdrawal, checkbook fees from next month
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.
New cash withdrawal from SBI ATMs, checkbook fees from July 1
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.
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