The Reserve Bank of India approved a levy of Rs 21 per transaction on automated teller machines on Thursday. Once a customer’s free transaction limit has been reached, banks may charge them up to this amount.
The authority stated on its website that the maximum costs will be reduced from the present Rs 20 per transaction. The increased fees will go into effect on January 1, 2022.
If customers use their own bank ATMs, they are entitled to five free transactions each month. Clients who use other bank ATMs are limited to three free transactions per month for metro clients and five for non-metro customers.
In June 2019, a committee chaired by the chief executive officer of the Indian Banks’ Association issued recommendations on ATM charges and the whole range of costs associated with transactions completed on them.
Customers will be charged Rs 24 for each transaction, according to the committee’s recommendation at the time. The revised fees are intended to compensate banks that will have to pay a higher interchange fee beginning August 1.
The regulator stated in the statement that the interchange charge per financial transaction will be increased to Rs 17 from Rs 15 now. In the case of non-financial transactions, the interchange charge would be increased from Rs 5 to Rs 6.