Reserve Bank of India (RBI) has changed some rules regarding 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 interchange fee.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
The new ATM charges as defined by RBI are as under:
- Free cash withdrawal limit from own bank: Bank customers can now do five free financial and non-financial transactions every month from their own bank ATMs.
- Free ATM transaction limit from other banks: ATM cardholders can do three free financial and non-financial transactions in metro centres while five in the non-metro transaction from other bank ATMs
- Charges on ATM cash withdrawal beyond the free limit: RBI allowed banks to increase charges on ATM transactions beyond the free ATM transaction limit.
- Rise in interchange fee: Interchange fee per transaction changed from Rs 15 to Rs 17 for financial transactions while from Rs 5 to Rs 6 for non-financial transactions in effect from August 1, 2021.
- New charges on ATM withdrawal beyond the free transaction limit: Bank customer will have to pay Rs 21 (currently it is Rs 20) for each ATM cash withdrawal beyond the free transaction limit in effect from January 1, 2022.