RBI Hikes ATM Interchange Fee, Here're All The Details

The Reserve Bank of India (RBI) on Thursday allowed changes in the rules related to ATM transactions after almost 9 years. RBI allowed all banks to increase interchange charges for ATM transactions. RBI has said that the facility of 5 times free use of ATMs will continue for customers, but after that it will cost Rs 6 for non-financial transactions. At the same time, the fee charged for financial transactions i.e. withdrawal of money has been increased from Rs 15 to Rs 17.

According to a Business Standards report, the Reserve Bank of India (RBI) has allowed an increase in the interchange fee structure for ATM transactions after almost nine years. Keeping in view the rising cost of deployment of ATMs across the country and maintenance of ATMs by banks, banks have now been allowed to charge more.

For many years, private banks and white label ATM operators have been demanding an increase in the interchange fee from Rs 15 to Rs 18. In June 2019, a committee was constituted under the chairmanship of the Chief Executive of the Association of Indian Banks, this decision has been taken on the basis of the recommendations of this committee.

New rules will be applicable from August 1

According to reports on Thursday, RBI has increased the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions from ATMs and from Rs 5 to Rs 6 for non-financial transactions with effect from August 1, 2021. At the same time, it is being told that from January 1, 2022, banks have been allowed to collect Rs 21 from customers as customer charge. At present, banks are allowed to charge up to a maximum of Rs 20 for this.