(Image source from: livemint.com)
The Reserve Bank of India (RBI) gave its nod for the banks to increase the charges on ATMs to Rs 21 per transaction. The banks can levy their charges once the user completes his monthly ATM withdrawals. The revised rates will be implemented from January 1st next year told the notification. All the customers are eligible for five free transactions through ATMs per month including financial and non-financial transactions. For the customers using other bank ATMs, there would be three free ATM transactions. RBI hiked the charges of ATM after seven years.
The prices are increased in the view of increasing cost of ATM deployment and maintenance charges. RBI formed a committee to review the ATM charges and the fees. RBI also increased the interchange fee from Rs 15 to Rs 17 for financial transactions and it is Rs 6 for non-financial transactions. These new rates will be implemented from August 2021. The fee charged by the banks to the merchant on payments made through credit card or debit card is called an interchange fee. State Bank of India said that it will change the charges and rules for ATM withdrawals. SBI also increased the ceiling for cash withdrawal at the non-home branches.