Prepare to pay more on ATM cash withdrawals, debit cards and credit card fees starting next month
New Delhi: If you frequently transact through ATMs, be prepared to pay more for the interchange fees that banks charge on financial transactions. The Reserve Bank of India (RBI) recently increased the interchange fee for financial transactions from Rs15 to Rs17, while for non-financial transactions the increase is from Rs5 to Rs6. The new prices will be applicable from August 1, 2021.
Interchange fees are fees charged by banks to merchants processing credit or debit card payments, according to RBI. Banks and ATM deployment companies have remained at odds over these charges.
READ ALSO : Suicide and Covid Risks in Mumbai Prison Subject of Nirav Modi’s Extradition Appeal to the United Kingdom
How many ATM cash withdrawals are free?
If you transact through your own ATM machine, there are five free transactions, including financial and non-financial transactions each month. You are also eligible for free transactions from other ATMs, which include three transactions in subways and five in non-metros.
However, if you exceed the limit for free transactions, the limit on customer charges is currently Rs 20 per transaction, which will be increased to Rs 21 from January 1, 2022. “To compensate banks for the higher interchange fees and given the general escalation in costs, they are authorized to increase the customer fees to 21. This increase will take effect on January 1, 2022, “the RBI said in a statement.
RBI had said that banks would be allowed to increase fees taking into account the need to balance the increasing cost of installing ATMs against the expense of ATM maintenance incurred by banks or ATM operators in white label as well as the convenience of stakeholder entities and the customer. . left. According to the PTI news agency report, there were 1,15,605 on-site ATMs and 97,970 off-site ATMs and around 90 crore of debit cards issued by various banks nationwide as of March 31.
Know the ICICI Bank ATM cash withdrawal, checkbook fees from August
ICICI Bank has published an advisory on its revised limits on cash transactions, ATM trading and checkbook fees. The fees revised above will apply to holders of national savings accounts, including salary accounts, and will take effect on August 1.