RBI Alert! Withdrawal of cash from ATM will be expensive from August 1, these transactions will also have to pay more charges
New Delhi, Business Desk. The Reserve Bank of India (RBI) recently announced an increase in the interchange fee charged by banks for ATM transactions. The interchange fee on financial transactions has been increased from Rs 15 to Rs 17. At the same time, the fee has been increased from Rs 5 to Rs 6 on non-financial transactions. These new rates will be effective from August 1, 2021.
What is Interchange Fee
According to the Reserve Bank, an interchange fee is a fee charged by a bank from merchants for processing payments through credit cards or debit cards.
Changes in the rules for withdrawing cash from ATMs
RBI has said that customers can do five free transactions from their bank's ATMs. These include financial and non-financial transactions. Not only this, customers can also withdraw money from other bank's ATMs without any charges. Under this, three transactions from other bank ATMs in metro cities and five in non-metro are included.
These charges will change from January 1, 2022
Customers will have to pay a fee of Rs 21 with effect from January 1, 2022, for transactions exceeding the free transactions prescribed by the RBI. Presently this fee is Rs.20.
In a statement issued by RBI last month, it was said, "In order to compensate for the higher interchange fee and keeping in view the increase in common cost, they are allowed to increase the customer charge to Rs 21 per transaction. These changes will be effective from January 1, 2022.
Important things about RBI
Reserve Bank of India (RBI) is the regulator of the banking system in the country. The central bank reviews the economy of the country, the condition of the banks and the functioning of the banking system. Along with this, monetary rates are also reviewed by RBI every two months. Shaktikanta Das is the current Governor of Reserve Bank of India