Withdrawal of cash from other bank’s ATM will be expensive from August 1, know new rules

New ATM Transaction Rules: If you withdraw money from any other bank’s ATM with your debit or credit card, then for this you will have to pay more than August 1. The Reserve Bank of India (RBI) has allowed all banks to increase their interchange charges from August 1. At present, banks charge Rs 15 as interchange charge for every financial transaction. Now with an increase of Rs 2 from August 1, this charge will be Rs 17. On the other hand, if we talk about non-financial transactions, then at present an interchange charge of Rs 5 has to be paid, which will now be Rs 6 from August 1.

According to the RBI, this decision has been taken due to the increase in the cost of maintaining ATMs. Also, RBI has said that, “In addition to the interchange charge, other taxes related to this will also have to be paid separately.”

Know how many times you can do free ATM transactions

According to the revised rules of RBI, customers can do five free transactions every month from their bank’s ATM. At the same time, customers can do three free ATM transactions in metro cities and five in non-metro cities from ATMs of other banks. After this you will have to pay additional charges for every transaction.

What is interchange charge

When a customer makes a payment using a credit card or debit card, the transaction fee is charged from the bank account of the merchant processing the payment. When you use an ATM of a bank other than yours, then your bank pays the interchange fee to that other bank. This is called interchange charge.

These changes were made based on the suggestions of a committee constituted by RBI in June 2019. The committee constituted under the chairmanship of VG Kannan, the then President of Indian Banks Association, had reviewed the ATM charges with special focus on the interchange structure of ATM transactions.

21 per transaction will be charged from January 1, 2022

According to the instructions of RBI, from January 1, 2022, the new revised rates will be applicable as transaction charges. After withdrawing money more than the prescribed limit from the ATM, the bank will be able to charge an additional fee of Rs 20 from the customer for every transaction. On the other hand, if you use any other bank’s ATM after a free transaction, then from January 1, 2022, you will have to pay an interchange charge of Rs 21 per transaction.

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