Attention!! 5 New ATM Cash Withdrawal Rule Changes You Should Know
The Reserve Bank of India (RBI) on Thursday announced some changes in automated teller machine (ATM) cash withdrawal rules.
The Reserve Bank of India (RBI) on Thursday announced some changes in automated teller machine (ATM) cash withdrawal rules. These ATM cash withdrawal rule changes include higher charges on transactions beyond free permissible limit, new free ATM transaction limit and rise in intercharge fee. The RBI made this announced by issuing a circular on the basis of recommendations of the committee it constituted in June 2019 under the Chairmanship of the Chief Executive, Indian Banks’ Association to review the entire gamut of ATM charges and fees with particular focus on interchange structure for ATM transactions.
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."
Here are 5 ATM cash withdrawal rule changes that an ATM user must know:
1] Free cash withdrawal limit from own bank's ATM: Bank customers are now eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.
2] Free ATM transaction limit from other bank: Bank ATM card holders 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.
3] Hike in charges on ATM cash withdrawal beyond free limit: The RBI has allowed banks to increase charges on ATM transactions beyond free ATM transaction limit.
"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," the RBI circular announced.
4] Rise in intercharge fee: The RBI has allowed increase in interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be effective from 1st August 2021.
5] New charges on ATM withdrawal beyond free transaction limit: As per new RBI circular, a bank customer will have to pay ₹21 for each ATM cash withdrawal beyond free transaction limit. This will become effective from 1st January 2022. Currently, this charge is at ₹20.