Now withdrawing money from ATM will be expensive, Reserve Bank increased this fee

Now for bank customers, transactions above the free limit in a month will be costly from ATMs. The Reserve Bank has increased the customer charge and non-bank ATM charges to be charged from the customers. The Reserve Bank of India (RBI) has increased the interchange fee on ATM transactions. This means that if you withdraw money from an ATM of any other bank instead of your bank, then you will get more money for the transaction more than the free limit. This increase will come into effect on August 1, 2021.

increased customer charge

Similarly, the Reserve Bank has also increased the limit of customer charge per transaction from Rs 20 to Rs 21. This means that you will now have to pay more charges if you cross the free transaction limit at your bank's ATM. The Reserve Bank said that these new charges will also be applicable for cash recycler machines. However, this increase will be applicable from January 1, 2022.

The Reserve Bank has increased the interchange fee for financial transactions at all bank ATMs from Rs 15 to Rs 17. Similarly, the fee for non-financial transactions has been increased from Rs.5 to Rs.6. Financial transaction means to withdraw money, similarly non-financial transaction means to find balance etc.

Transaction costly over the limit

It is worth noting that no charge is charged from customers for transactions made from ATMs of other banks thrice in a month in metro cities and five times in non-metro cities. After that it gets charged. That is, if you transacted more than this limit, then now it will be expensive.

In Jue 2019, a committee was constituted under the chairmanship of the head of the Indian Banks Association. This change has been made on the basis of his recommendations. In a statement, the Reserve Bank said, "The recommendations of the committee have been widely considered. It was also observed that the earlier change in the interchange fee on ATM transactions was done in August 2012. Similarly, the last change in the charge to be taken from the customer was in August 2014.

It is worth noting that banks give free transactions to their customers up to a certain limit from their ATMs, after that they also levy charges. The Reserve Bank says that customers will get five transactions every month, financial or non-financial, available free of cost from their bank ATMs.