The Reserve Bank of India (RBI) on Thursday introduced some changes in automated teller machine (ATM) cash withdrawal guidelines. These ATM cash withdrawal rule changes embody greater costs on transactions past free permissible restrict, new free ATM transaction restrict and rise in intercharge payment. The RBI made this introduced by issuing a round on the idea of suggestions of the committee it constituted in June 2019 beneath the Chairmanship of the Chief Executive, Indian Banks’ Association to evaluate the complete gamut of ATM costs and charges with explicit deal with interchange construction for ATM transactions.
The RBI round mentioned, “The suggestions of the Committee have been comprehensively examined. It can be noticed that the final change in interchange payment construction for ATM transactions was in August 2012, whereas the fees payable by clients have been final revised in August 2014. A considerable time has thus elapsed since these charges have been final modified.”
Here are 5 ATM cash withdrawal rule changes that an ATM person should know:
1] Free cash withdrawal restrict from personal financial institution’s ATM: Bank clients are actually eligible for 5 free transactions (inclusive of economic and non-financial transactions) each month from their very own financial institution ATMs.
2] Free ATM transaction restrict from different financial institution: Bank ATM card holders are actually eligible totally free transactions (inclusive of economic and non-financial transactions) from different financial institution ATMs viz. three transactions in metro centres and 5 transactions in non-metro centres.
3] Hike in costs on ATM cash withdrawal past free restrict: The RBI has allowed banks to extend costs on ATM transactions past free ATM transaction restrict.
“To compensate the banks for the upper interchange payment and given the final escalation in prices, they’re allowed to extend the client costs to ₹21 per transaction. This improve shall be efficient from January 1, 2022,” the RBI round introduced.
4] Rise in intercharge payment: The RBI has allowed improve in interchange payment per transaction from ₹15 to ₹17 for monetary transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be efficient from 1st August 2021.
5] New costs on ATM withdrawal past free transaction restrict: As per new RBI round, a financial institution buyer must pay ₹21 for every ATM cash withdrawal past free transaction restrict. This will turn out to be efficient from 1st January 2022. Currently, this cost is at ₹20.
Subscribe to Mint Newsletters
* Enter a sound electronic mail
* Thank you for subscribing to our e-newsletter.
Never miss a narrative! Stay related and knowledgeable with Mint.
our App Now!!