Central Bank has changed 5 rules regarding cash withdrawal from ATM. The New rules include high charges on transactions beyond free permissible limit, new free ATM transaction limit and increase in interchange fee.
- The Changes were made on the basis of recommendations of Chief Executive committee it constituted in June 2019.
- Indian Banks’ Association reviewed entire ATM charges and fees with its focus on interchange structure for ATM transactions.
- Free cash withdrawal limit from own bank: The Bank customers can now do 5 free financial and non-financial transactions every month from their own bank ATMs.
- Free ATM transaction limit from other bank: ATM card holders can do 3 free financial and non-financial transactions in metro centres while 5 in non-metro transaction from other bank ATMs
- Charges on ATM cash withdrawal beyond free limit: Reserve Bank of India allowed banks to increase charges on ATM transactions beyond free ATM transaction limit.
- Rise in interchange fee: Interchange fee per transaction changed from Rupees 15 to Rupees 17 for financial transactions while from Rupees 5 to Rupees 6 for non-financial transactions in effect from August 1, 2021.
- New charges on ATM withdrawal beyond free transaction limit: Bank customer will have to pay Rupees 21 (currently it is Rupees 20) for each ATM cash withdrawal beyond free transaction limit in effect from 1st January 2022.
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