ATM charge increase is pinching consumer amidst pandemic
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. more