All customers of private and public sectors banks should hear about recent development in revised charges on cash withdrawals from ATM.
Debit and credit card owners will have to pay extra charges on cash withdrawals. This will be applicable on transactions beyond monthly limit.
Currently each customer is provided with five free transactions to withdraw cash from ATM of their own bank. If customers are using ATM facilities of other banks they have three free transactions in metro cities (Mumbai, Bengaluru, Chennai, Delhi, Kolkata and Hyderabad).
Till now, beyond free transaction limit customer was paying Rs 20 per transaction. This was in correspondence with DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014. Back in 2012, the structure of interchange fee for ATM transactions was last changed and since then it has been the same. According to central bank of India, sufficient time has passed and revisions should take place.
As per new hikes, customer will have to pay Rs 1 extra. For every transaction beyond free limit you will pay Rs 21 for each transaction. The changes in rate were notified by Reserve Bank of India in June, 2021.
ATM transaction fee was hiked last time in August, 2014 and since then it has not been revised. It is fair for both private and public banks to meet their expenses. Compensations to banks are necessary because rate of interchange fee has increased. However, no bank can charge more than Rs 21 per transaction.
The rule will also be applicable for Cash Recycler Machines (other than for cash deposit transactions).
In 2019, RBI formed a committee to review the transaction charges for cash withdrawal from ATM machines. The committee focused on interchange structure for ATM transactions. It took 2 years to take the decision which is a fairly long time.
Now, you need to check your cash withdrawal behavior on monthly basis.
