5 rules for ATM cash withdrawal changed, Read details  

The Reserve Bank of India (RBI) on Thursday announced some changes in automated teller machine (ATM) cash withdrawal rules. These ATM cash withdrawal rule changes include higher charger on transitions beyond free permissible limit, new free ATM transaction limit, and rise in interchange fee. The RBI made this announced by issuing a circular based on recommendations of the committee it constituted in June 2019 under the Chairmanship of the Chief Executive, Indian Banks’ Association to review the entire gamut of ATM charges and fees with particular focus on interchange structure for ATM transactions.

The RBI circular said, “The recommendation of the Committee has been comprehensively examined. It is also observed that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014. A substantial time has thus elapsed since these fees were last changed.”

Change rules of the 5 cash withdrawal ATM, Know here:

• Free cash withdrawal limit from own bank’s ATM: Bank customers are now eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.
• Free ATM transaction limit from other banks: Bank ATM cardholders are now eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres.
• Hike in charges on ATM cash withdrawal beyond the free limit: The RBI has allowed banks to increase charges on ATM transactions beyond the free ATM transaction limit.

“To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customers’ charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022,” the RBI circular announced.

• Rise in interchange fee: The RBI has allowed an increase in interchange fee per transaction from Rs 15 to 17 for financial transactions in all centres. This shall be effective from 1^st August 2021.
• New charges on ATM withdrawal beyond the free transaction limit: As per a new RBI circular, a bank customer will have to pay Rs 21 for each ATM cash withdrawal beyond the free transaction limit. This will become effective from 1^st January 2022. Currently, this charge is Rs 20.