RBI has allowed banks to increase withdrawal charges. Under this, a higher service charge will have to be paid on transactions exceeding the prescribed limit. Therefore, it is important to be aware of these rules while withdrawing money.
ATM cash withdrawal
The Reserve Bank of India (RBI) on Thursday announced some changes in the rules for withdrawing money from ATMs. Under this, now more charges will have to be paid on cash withdrawals exceeding the prescribed limit. Along with this the intercharge fee will also be increased. RBI took this decision on the basis of the recommendations of the committee constituted in June 2019 under the chairmanship of Chief Executive, Indian Banks’ Association. In such a situation, if you are withdrawing money from an ATM, then it is important for you to know the new rules, otherwise you may have to pay more charges.
Withdrawal limit from your bank ATM
Under the new rules of RBI, now bank customers can take advantage of the facility of five free transactions (including financial and non-financial transactions) every month from their bank’s ATM. After this, they will have to pay the fee on withdrawal.
Transaction limit from other ATMs
You will get three chances for free transactions (including financial and non-financial transactions) if you withdraw money from another bank’s ATM. Although it will depend on the cities. Those who live in the metro city will get three cash withdrawal facility free of cost. Whereas five transactions will be allowed in non-metro cities.
Increase in customer charges
RBI has allowed banks to increase charges over and above the free ATM transaction limit. Banks have been allowed to increase customer charges by waiving interchange charges and keeping in view the general increase in cost. In this case, up to Rs 21 can be taken per transaction. This increase will be effective from January 1, 2022.
Interchange fees also increased
RBI has allowed an increase in the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions across all centres. This will be effective from 1 August 2021.
21 will have to be paid
According to the new circular of RBI, a bank customer will be exempted from the fixed free transaction limit for each ATM cash withdrawal. For transactions above this, Rs 21 will have to be paid. Right now this fee is Rs 20. This rule will be applicable from January next year.
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