ATM cash withdrawal, debit card, credit card charges to increase soon
The Reserve Bank of India (RBI) has recently raised the interchange fee that banks can charge on ATM transactions. The interchange fee for financial transactions has been hiked from ₹15 to ₹17, while for non-financial transactions the increase is from ₹5 to ₹6. The new rates will be applicable from August 1, 2021.
According to RBI, an interchange fee is a fee charged by banks to merchants processing payments through credit cards or debit cards. This fee has been a bone of contention between banks and ATM deployment companies.
ATM cash withdrawal rule changes
RBI also said that customers are eligible for five free transactions, inclusive of financial and non-financial transactions, every month from their own bank ATMs. They are also eligible for free transactions from other bank ATMs, which include three transactions in metros and five in non-metros.
Beyond the free transactions, the ceiling on customer charges is ₹20 per transaction at present, which will be hiked to ₹21 from 1 January 2022. “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 said in a statement.
New ICICI Bank ATM cash withdrawal, chequebook charges from next month
ICICI Bank has issued a notice on its revised limits of cash transactions, ATM interchange, and chequebook charges. The revised charges will be applicable for domestic savings account holders including salary accounts, and will come into effect from August 1.
New SBI ATM cash withdrawal, cheque book charges from 1st July
State Bank of India (SBI) has recently revised the service charges for withdrawing cash from its ATMs and bank branches in early July. For Basic Savings Bank Deposit (BSBD) Accounts or SBI BSBD accounts, charges will be recovered beyond the free 4 cash withdrawal transactions including ATM and branch. Apart from this, SBI account holders will be exempted from any charges on the first 10 cheque leaf only. For cheque leaf beyond this limit will be subject to charges going to become effective from 1st July 2021.
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