5 ATM money withdrawal rule modifications you need to know

The Reserve Bank of India (RBI) on Thursday introduced some modifications in automated teller machine (ATM) money withdrawal guidelines. These ATM money withdrawal rule modifications embody increased costs on transactions past free permissible restrict, new free ATM transaction restrict and rise in intercharge price. The RBI made this introduced by issuing a round on the premise of suggestions of the committee it constituted in June 2019 underneath the Chairmanship of the Chief Executive, Indian Banks’ Association to evaluate all the gamut of ATM costs and costs with explicit give attention to interchange construction for ATM transactions.

The RBI round stated, “The recommendations of the Committee have 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.”

Here are 5 ATM money withdrawal rule modifications that an ATM consumer should know:

1] Free money withdrawal restrict from personal financial institution’s ATM: Bank clients are actually eligible for 5 free transactions (inclusive of monetary and non-financial transactions) each month from their very own financial institution ATMs.

2] Free ATM transaction restrict from different financial institution: Bank ATM card holders are actually eligible totally free transactions (inclusive of monetary and non-financial transactions) from different financial institution ATMs viz. three transactions in metro centres and 5 transactions in non-metro centres.

3] Hike in costs on ATM money withdrawal past free restrict: The RBI has allowed banks to extend costs on ATM transactions past free ATM transaction restrict.

“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 ₹21 per transaction. This increase shall be effective from January 1, 2022,” the RBI round introduced.

4] Rise in intercharge price: The RBI has allowed improve in interchange price per transaction from ₹15 to ₹17 for monetary transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be efficient from 1st August 2021.

5] New costs on ATM withdrawal past free transaction restrict: As per new RBI round, a financial institution buyer should pay ₹21 for every ATM money withdrawal past free transaction restrict. This will turn out to be efficient from 1st January 2022. Currently, this cost is at ₹20.

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