ATM Cash Withdrawal Charges: It has been decided to increase the ATM cash withdrawal charge. Customers will now have to spend more than before to withdraw cash from ATMs. It has been increased after about 9 years. The new charges will be applicable from next year.
Customers withdrawing cash from ATM have suffered a major setback. Earlier, to withdraw cash from an ATM, Rs 20 had to be paid per transaction. Now this amount has increased to Rs 21 per transaction. However, this charge will have to be paid only to those customers who withdraw cash more than the prescribed limit every month. The Reserve Bank of India has allowed all banks to increase ATM withdrawal charges.
In the information given by RBI, it was told that banks have to pay more interchange fees. In such a situation, they have been allowed to increase the customer charge to Rs 21 per transaction. Banks will be able to recover this charge from January 01, 2022.
However, the limit of 5 transactions per month will still be maintained on ATM cash withdrawal. This will include all types of financial and non-financial transactions. Customers will be allowed to withdraw cash from ATMs of other banks 3 times in metro cities and 5 times in non-metro cities. RBI said that the cost of setting up new ATMs and maintenance of old ATMs has increased for banks.
Apart from this, the charges levied on ATM transactions by banks have been increased from Rs 15 to Rs 17. This charge is for financial transactions. This charge has been increased from Rs 5 to Rs 6 for non-financial transactions.
RBI had formed a committee in June 2019 under the chairmanship of Indian Banks Association VG Kannan to review the ATM charges. The recommendation to the committee was brought to the fore in July 2020. The committee had recommended to consider population as the metric for ATM charges.
Let us tell you that before this, the last change in the interchange fee structure for ATM transactions was done during August 2012. However, the charge paid by the customers came into effect from August 2014. After this no change was made in such charges.