Bank customers Bad News : This much Amount will have to be paid for withdrawing money from ATM

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For withdrawing money more than the fixed free limit from banks’ ATMs (ATMs), more charges will have to be paid from next year. The Reserve Bank of India (RBI) on Thursday allowed banks to increase charges for cash withdrawals or other transactions exceeding the prescribed free monthly limit through ATMs from next year. Under this, if bank customers transact more than the permissible limit of free withdrawal or other facilities from January 1, 2021, then they will have to pay Rs 21 per transaction, which is Rs 20 at present.

In a circular, RBI said banks have been allowed to increase the customer charges per transaction to Rs 21 to compensate them for charges (interchange fee) and other costs incurred for using the card at ATMs of other banks. Has been. The increased duty will come into effect from January 1, 2022. 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 free of cost thrice at other banks’ ATMs in metropolitan cities and five times in smaller cities.

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According to the circular, it has also been allowed to increase the interchange fee from Rs 15 to Rs 17 per financial transaction and from Rs 5 to Rs 6 in case of non-financial transactions with effect from August 1, 2021. 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. The RBI said that in view of the increasing cost of installation of ATMs and increase in the maintenance cost of ATM operators, the fee hike has been allowed. It takes into account the need for balance between the facilities of the concerned units and the customers.

The central bank had in June 2019 constituted a committee under the chairmanship of the Chief Executive of the Indian Banks Association to consider ATM charges and fees for ATM transactions with a specific focus on the interchange structure. RBI said that the recommendation of the committee has been examined in detail. The interchange fee for ATM transactions was last revised in August 2012. There are 1,15,605 on-site ATMs and 97,970 off-site ATMs in the country as on March 31, 2021. About 90 crore debit cards have been issued by various banks till the end of March, 2021. The first ATM in India was established in 1987 by HSBC in Mumbai. In the subsequent 12 years, about 1500 ATMs were installed. In 1997, the Indian Banks Association established Savdhaan, the first shared network of ATMs that allowed interoperable transactions.

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