ATM Cash Withdrawal Rules have Changed: RBI

Key Highlights – 

  • The RBI Have said that some rules have changed for some particular Cash WIthdrawals. 
  • RBI has Changes some Rules Regarding the Cash Withdrawal From Automated Teller Machine(ATM). These ATM Cash Withdrawal Rule Changes Include Higher Charges On Transactions Beyond The Free Permissible Limit, A new Free ATM Transaction Limit And a Rise In Interchanging Fee,

The New ATM Charges As Defined By RBI Are as Follows –

  1. Exceeding the monthly limit of free transactions:

Customers will have to pay ₹21 per transaction, instead of ₹20 if they exceed their monthly limit of free transactions. This increase will be effective from January 1, 2022.

“To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022,” RBI said in its circular.

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  1. New free ATM transaction limit:

Customers will continue to remain eligible for five free transactions, including financial and non-financial, per month from their own bank ATMs. They will also be eligible for three free transactions from the ATMs of other banks in metro centres and five transactions in non-metro centres.

  1. Free ATM transaction limit from another bank:

Bank ATM cardholders are now eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres.

  1. Increase in interchange fee:

From August 1 this year, banks are allowed to increase the interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres.

 5. New charges on ATM withdrawal beyond free transaction limit: 

As per the new RBI circular, a bank customer will have to pay ₹21 for each ATM cash withdrawal beyond the free transaction limit. This will become effective from 1st January 2022. Currently, this charge is ₹20.

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Although, The Above Mentioned Rules Will be Effective From the 1st Of August 2021. Furthermore, The RBI circular said, “The recommendations of the Committee have been comprehensively examined. It is also observed that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014. A substantial time has thus elapsed since these fees were last changed.”

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