ATM transactions: Interchange payment, cost after free withdrawals hiked

After nearly 9 years, the Reserve Bank of India (RBI) on Thursday introduced a hike within the interchange payment construction for ATM transactions, permitting a rise in interchange payment per transaction from Rs 15 to Rs 17 for monetary transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres. The new costs can be efficient from August 1.
The central financial institution additionally stated clients are eligible for 5 free transactions (inclusive of economic and non-financial transactions) each month from their very own financial institution ATMs. They are additionally eligible without cost transactions (inclusive of economic and non-financial transactions) from different financial institution ATMs, viz. three transactions in metro centres and 5 transactions in non-metro centres. Beyond the free transactions, the ceiling or cap on buyer costs is Rs 20 per transaction. To compensate the banks for the upper interchange payment and given the overall escalation in prices, they’re allowed to extend the shopper costs to Rs 21 per transaction. This can be efficient from January 1, 2022.
As per the RBI, the final change in interchange payment construction for ATM transactions was in August 2012, whereas costs payable by clients had been final revised in August 2014.