ATM withdrawal charges.
You should pay ATM withdrawal charges as Rs 21+taxes instead of Rs 20+taxes if you exceed the monthly free limits. The revised charges will be implemented all over India from January 1, 2022. The charge payable by customers was last revised in August 2014.
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Increase in ATM Interchange fee.
From Aug 2021, the interchange fee for ATM transactions is increased from Rs 15 to Rs 17 for financial transactions. And for non-financial transactions, it is increased from Rs 5 to Rs 6. An Interchange fee is a charge paid by the ATM card issuer bank to the bank whose ATM is used to withdraw cash.
Why increased ATM withdrawal charges?.
As per RBI circular 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 (inclusive of financial and non-financial transactions) from other bank ATMs viz. Three transactions in metro centers and five transactions in non-metro centers.
But beyond the limits, they are requested to pay the charge of Rs 21+taxes instead of Rs 20+taxes for financial transactions. Charges are revised because of the increasing cost of ATM deployment and expenses. Towards ATM maintenance incurred by banks / white label ATM operators.
These instructions are also for the transactions done at Cash Recycler Machine(except for cash deposits). A Cash Recycler Machine is a self-service machine that accepts both deposits and withdrawals..
