ATM cash withdrawal: If you use ATMs, then this news is important for you. The Reserve Bank of India (RBI) is considering increasing the maximum fee and the ATM interchange fee that banks charge customers when they exceed the limit of five free transactions. According to a report from Hindu Businessline, this hike in charges will lead to banking customers having to pay more when withdrawing cash from ATMs.
Notably, this increase in charges will result in banking customers having to spend more money out of their own pockets to withdraw cash from ATMs.
ATM withdrawing fee set to increase
The National Payments Corporation of India (NPCI) has recommended increasing the maximum cash transaction fee from the current level of Rs 21 per transaction to Rs 22 after the five-free limit is completed. Payments regulator NPCI, after consultation with the industry, has also recommended increasing the ATM interchange fee for cash transactions from Rs 17 to Rs 19. The fee for non-cash transactions has been recommended to be increased from Rs 6 to Rs 7.
What is ATM interchange fee?
ATM interchange fee is a fee that one bank pays to another bank for using ATM services. This fee is usually a percentage of the transaction and is often added to the customer’s bill. Banks and white-label ATM operators are in agreement with NPCI’s plan to increase the fee for metro and non-metro areas. The Reserve Bank of India and NPCI did not comment on the development.
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