The banks have been permitted to increase charges for cash and non-cash ATM transactions.
These charges have been hiked because of increasing cost of ATM deployment and maintenance.
Reserve Bank of India has permitted banks to hike the ATM transaction fee beyond the free limit. Banks can now increase charges for cash and non-cash ATM transactions beyond free monthly permissible limit.
This rule will be effective from 1st January, 2022. Rs 21 per transaction instead of the existing 20 rupees will have to be paid by the customers if they exceed monthly transactions.
In a circular RBI said, “To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022.”
Customers will continue to be eligible for five free transactions every month from their own bank’s ATM. Three free transactions from other bank ATMs in metro centres and five in non-metro centres are also allowed.
Banks are also allowed to increase interchange fee per transaction from Rs 15 to Rs 17 for financial transaction and Rs 5 to Rs 6 for non-financial transactions.