New Delhi: Debit or credit cardholders are all set for a big change in the coming new year. RBI has decided to increase the charges on ATM withdrawals of every public and private bank. The increased charges will apply after the free monthly limit is exhausted. As per RBI notification, customers will have to pay Re 1 more than before to withdraw money.
New ATM Rules: Check New ATM Fees, Transaction Limits Here
After the free limit was exhausted, earlier customers had to pay Rs 20 for every transaction.
Now, they have to pay Rs 21 per transaction.
RBI said the charges have not been revised since August 2014.
According to RBI, this step is being taken to compensate banks for the high interchange fee and general increase in cost.
The new charges will be applicable from January 1, 2021.
Customers are allowed 5 free transactions from their own bank.
In addition, customers are eligible to withdraw cash from ATMs of other banks. Three such transactions are allowed per month in metro cities and five in non-metro cities.
The new rule is also applicable to cash recycler machines.
Interestingly, RBI revised the transaction limit in August 2021.
In 2019, RBI formed a committee under the chairmanship of VG Kannan, the then chairman of IBA, to decide the new rules for ATM charges and transactions.