The Reserve Bank of India has decided to increase the fee charged for withdrawing money from ATM (RBI ATM Withdrawal Fee Hike). These changes will soon be implemented across the country. RBI has decided to increase the fee not only on cash withdrawal (ATM Cash Withdrawal) but also on services like checking balance from ATM under its new rules. This decision has been taken keeping in mind the increasing use and service cost of banks. Let us know how much charge will be levied for withdrawing money from ATM and when will these new rules come into effect.
What is ATM Interchange Fees?
Every person in the country can withdraw cash from ATM for free up to a limit. But after the limit is over, you have to pay interchange fees. Interchange fees are what one bank pays to another bank when its customers use the ATM.
When the limit is over, the bank charges the same fee from its customers. Currently, most banks are charging their customers about Rs 17 per transaction.
RBI ATM Withdrawal Fee Hike
According to the new rule of RBI, now customers will have to pay more fee for withdrawing money from ATM. Under the new instructions, whenever customers withdraw money from ATM after their free transaction limit, they will have to pay a fee of Rs 19 per transaction, which was earlier Rs 17. That is, now an additional charge of Rs 2 will be levied on each transaction.
Apart from this, a charge will also have to be paid for checking bank balance from ATM. Which is currently Rs 6. And after the new rules come into force, it will be increased by Rs 1 to Rs 7.
What Is The Free Limit For Withdrawing Money From ATM
According to RBI guidelines, customers can do 5 free transactions in their bank’s ATM every month, that is, they can withdraw cash 5 times free every month from their bank’s ATM. Apart from this, 3 free transactions are provided in metro cities and 5 free transactions in non-metro cities in ATMs of other banks. A fee of Rs 19 will have to be paid on every transaction done after this limit.
How Many Times Can You Do Free Transactions?
According to the country’s central bank, RBI, all customers can withdraw money for free only up to a fixed limit. In metro cities like Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, a person can do three transactions free of charge every month.
New Rule Will Come Into Effect From May 1
These new rules announced by RBI will come into effect from May 1. This means that customers who want to avoid extra charges on their banking transactions will have to take care of the free limit.
Conclusion
You do not have to pay any fee for withdrawing cash from ATM up to a limit. But after the limit is reached, a certain charge is deducted from your account. Earlier, a charge of Rs 17 had to be paid for withdrawing cash from ATM. Which will now be increased by Rs 2. If you have any question regarding this post, then you can tell us by commenting in the comment box given below. Your feedback and suggestions are welcome as always. Thank you.
