If you withdraw cash from an ATM, you should be prepared to pay more charges for usage in the coming days. You may have to pay more charges for withdrawing cash after the set free limit. In fact, according to a report in the Economic Times, ATM operators in India have approached the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to increase the interchange fee paid by customers on cash withdrawals.
Demand for Rs 23 per transaction
According to the report, the Confederation of ATM Industry or CATMI wants this fee to be increased to a maximum of Rs 23 per transaction to ensure more funding commitments for the business. An ATM manufacturer says that the interchange rate was increased two years ago. We are approaching the RBI and it seems that they are supporting it. We (CATMI) have requested to increase the fee to Rs 21. However, some other ATM manufacturers have demanded to increase it to Rs 23.
Interchange fee was increased in the year 2021
The ATM manufacturer says that last time, it took several years to increase the interchange fee, but I think everyone is unanimous and it is just a matter of time for the (fee) increase to happen. According to the report, RBI did not respond to an email seeking a response. In the year 2021, the interchange fee on ATM transactions was increased from Rs 15 to Rs 17. ATM interchange is the fee that is paid by the card issuing bank to the bank where the card is used to withdraw cash. Also, the limit of fee charged from the customer was increased from Rs 20 to Rs 21 per transaction.
This facility is currently available in these cities
Currently, for six metro cities – Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi – banks offer their saving bank account holders a minimum of five free transactions in a month, with three transactions free at any other bank’s ATM.
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