Banks are set to increase the fees for customers who make more than 5 ATM transactions. If you exceed this limit
In a move that could have a significant impact on your wallet, banks are set to increase the fees for customers who make more than 5 ATM transactions. If you exceed this limit, expect to pay more to withdraw cash from your ATM, which could make frequent withdrawals more expensive.
What Is ATM Interchange Fee?
What Does This Mean for You?
Sources have revealed that the Reserve Bank of India (RBI) is also planning to hike the ATM interchange fee, which is the charge applied when customers use ATMs of banks other than their own. This change, if implemented, will lead to higher costs for customers who rely on ATM withdrawals.
How Much Will the Fees Increase?
Currently, after five free ATM withdrawals, customers are charged a maximum fee of Rs 21 per transaction. According to recommendations from the National Payments Corporation of India (NPCI), this fee could rise to Rs 22.
NPCI’s Recommendations
Along with the proposed increase in ATM withdrawal fees, NPCI has suggested that the RBI raise the ATM interchange fee. Although no official announcement has been made yet, these recommendations are under consideration.
The suggestions include:
Increasing the ATM interchange fee for cash transactions from Rs 17 to Rs 19.
Raising the charge for non-cash transactions (like balance inquiries or mini-statements) from Rs 6 to Rs 7.
The RBI is expected to make a decision on these recommendations soon.
What Is ATM Interchange Fee?
Many customers are unaware of the ATM Interchange Fee, which is the charge that one bank imposes on another when a customer uses an ATM that doesn’t belong to their own bank. For instance, if you are an SBI customer but use an ATM from another bank to withdraw cash, the other bank charges SBI for processing the transaction. This fee is ultimately borne by the customer.
What Does This Mean for You?
With these changes, regular ATM users will have to pay more if they exceed the allowed number of transactions, potentially affecting your monthly expenses. It is essential to stay updated on any new rules or charges that could impact your finances.
As the RBI reviews these proposals, customers will need to prepare for the possibility of higher charges when using ATMs beyond their bank’s network.
