If you’re someone who often takes out cash from ATMs, you might want to pay attention to this update. There’s a chance that the fees for withdrawing cash could go up. Reports suggest that the Reserve Bank of India (RBI) is considering raising the charges for transactions that go beyond the free limit of five, as well as the fees banks pay each other for ATM usage.
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Sources close to the situation have indicated that this increase means customers will end up paying more when they withdraw cash from ATMs. The National Payments Corporation of India (NPCI) has proposed raising the maximum fee for customers who exceed the five free transactions from Rs 21 to Rs 22.
NPCI is also looking to hike several other fees. They’ve suggested increasing the ATM interchange fee for cash withdrawals from Rs 17 to Rs 19, and for non-cash transactions, from Rs 6 to Rs 7.
So, what exactly is an ATM interchange charge? It’s the fee one bank charges another when a customer uses an ATM that isn’t their own bank’s. For example, if you’re with SBI but use an HDFC Bank ATM to withdraw cash, HDFC Bank will charge SBI a fee for handling your transaction.
Banks and white label ATM operators have given the thumbs up to NPCI’s proposal, as stated in the report. This hike isn’t just for the big cities; it’s set to roll out in smaller towns and rural areas too. The Reserve Bank of India (RBI) put together a committee made up of the CEO of the Indian Banks Association (IBA), along with officials from State Bank of India (SBI) and HDFC Bank to tackle this matter. After looking into the banking sector’s costs, this committee came up with the recommendation.
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This article discusses: Using ATM can be expensive, will there be a higher charge for withdrawing money? Let’s…