ATM Cash Withdrawal Rules: Now withdrawing money from ATM and checking balance is going to be a little more expensive. In fact, the Reserve Bank of India (RBI) has approved the increase in ATM interchange fees.
In such a situation, from May 1, the fee for financial transactions like cash withdrawal will increase by Rs 2 and the fee for non-financial transactions like balance checking will increase by Rs 1. That is, now the interchange fee for withdrawing cash will increase from Rs 17 to Rs 19 and the fee for checking balance will increase from Rs 6 to Rs 7.
These changes will affect small banks more, especially those that have a small ATM network of their own. According to sources, white-label ATM operators had demanded an increase in fees because the old fees were making it difficult for them to run their operations. In such a situation, banks will try to compensate for this by increasing the fees from customers to reduce the burden on themselves.
What is interchange fee?
ATM interchange fee is the charge that one bank pays to another bank when you use its ATM. This fee is part of the transaction and is often added to the customer’s bill. The National Payments Corporation of India (NPCI) had informed the banks about this change on March 13. NPCI had sought permission from RBI to increase the fee, which has now got the green signal.
What were the rules now?
As of now, if customers in metro cities use ATMs of other banks, they get 5 free transactions every month. Whereas, in non-metro areas, this limit is 3 transactions. After this, a charge is levied on every transaction. Now, due to the increase in fees, the expenses of small banks will increase further, because their customers have to use ATMs of other banks.
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