ATM Cash withdrawal rule changes you should acutely aware

0
331

The RBI on Thursday declared some new changes in ATM cash withdrawal rules and limits. The ATM withdrawal rule changes include higher charges on the transactions beyond the allowable limit from next year, a new free ATM transactions limit, and a hike in interchange fees.

The central bank made this decision by issuing a circular based on recommendations of the committee which was constituted in June 2019 under the Chairmanship of the Chief Executive, Indian Bank Association(IBA) to review and revise the entire range of ATM charges with particular focus on interchange structure for ATM transactions.

The RBI also reports that such changes adhere to rules and also a substantial time has been elapsed since these fees were last changed in August 2014.

5 ATM cash withdrawal rule changes that must you aware of:

1.Free cash withdrawal limit from own’s bank ATM-

Bank customers are now eligible for 5 free transactions (inclusive of both financial and non-financial transactions) every month from their own bank ATMs.

2.Free ATM cash transactions limit from other banks-

Bank ATM cardholders are now eligible for free transactions (inclusive of both financial and non-financial transactions) from other bank’s ATMs viz. 3 transactions in metro cities and 5 transactions in non-metro cities.

3.Hike in charges on ATM cash withdrawal beyond the allowable free limit-

The central bank i.e. RBI has allowed banks to increase the charges on ATM transactions beyond the free ATM transactions permissible limit.

To compensate the banks for the higher interchange fee and given the general increase in costs, they are allowed to increase the customer charges to ₹21 per transaction, with effect from Jan 1, 2020, if they exceed the monthly limit of free transactions as per the RBI circular stated.

4.Interchange fee hike-

The RBI has allowed an increase in interchange fee per transaction from ₹15 to ₹17 for financial transactions and ₹5 to ₹6 for non-financial transactions in all centers. This shall be effective from 1st Aug 2021.

5.New changes on ATM withdrawal beyond free allowable transaction limit-

A bank customer will have to pay ₹21 for each ATM cash withdrawal beyond the free permissible transaction limit, instead of ₹20 which is currently charged from bank customers. This rule will become applicable from 1st Jan 2022.

Stating the major reason behind the increase in customer charges, the central bank stated; ATMs are deployed by banks for serving their own customers & provide services to other banks customer too as acquirer, where they earn, is interchange.

Thereby given the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by the banks & ATM operators, as also considering the need to balance the expectation of stakeholder entities and customer convenience.

Follow and connect with us on Facebook, LinkedIn & Twitter

LEAVE A REPLY

Please enter your comment!
Please enter your name here