ATM Alert: Customers will be eligible for five free transactions (financial and non-financial transactions) every month from their bank’s ATMs as before.
ATM Alert: If you withdraw money more than the fixed free limit from the ATMs of banks, you will have to pay more charges from next year. The Reserve Bank of India (RBI) has allowed banks to increase fees for withdrawing cash or doing other transactions more often than the fixed free monthly limit through ATMs from next year. According to the news of PTI, under this, from January 1, 2022, if bank customers transact more than the prescribed limit of free withdrawal or other facilities, then they will have to pay Rs 21 per transaction which is Rs 20 at present.
The increased fee will be applicable from January 1, 2022.
According to the news, the RBI said in a circular that banks should be compensated for the use of cards (interchange fees) in ATMs of other banks and in view of the increase in other costs, they should increase the customer fee per transaction to Rs 21. permission has been given. The increased fee will come into effect from January 1, 2022.
Will continue to do five free transactions every month
However, customers will be eligible for five free transactions (financial and non-financial transactions) every month from their bank’s ATMs as before. They will be able to transact thrice at other banks’ ATMs in metropolitan cities and five times in smaller cities. According to the circular, with effect from August 1, 2021, the ‘interchange fee’ has been increased from Rs 15 to Rs 17 per financial transaction and from Rs 5 to Rs 6 in case of non-financial transactions.
Permission given for rising cost
Banks install ATMs for the convenience of their customers. Along with this, services are also provided to the customers of other banks. For usage beyond the prescribed limit, they charge a fee which is called interchange fee. RBI said that in view of the increasing cost of installation of ATMs and the increase in the maintenance cost of ATM operators, permission has been given to increase the fee.
