RBI announces changes in ATM cash withdrawal rules

RBI announces changes in ATM cash withdrawal rules
Image: Pexel

Reserve Bank of India (RBI) announced changes in the ATM rules with regard to cash withdrawal. There will be an increase in charges for transactions beyond the free monthly permissible limit. A new free ATM transaction limit and an increase in the interchange fee per transaction will also be there.

The changes in ATM rules were announced on the basis of suggestions of a committee set up by RBI.

It was under the chairmanship of the chief executive of the Indian Banks’ Association (IBA) to review the entire gamut of ATM charges and fees.

Customers will have to pay Rs 21 per transaction if they exceed their monthly limit of free transactions. This increase will be effective from January 1, 2022.

Customers will continue to remain eligible for five free transactions. They will also be eligible for three free transactions from the ATMs of other banks in metro centres and five transactions in non-metro centres.

From August 1 2021, banks are allowed to increase the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions. For non-financial transactions it will be from Rs 5 to Rs 6.

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