Now you will have to pay more charges for withdrawing cash from ATM machines or for non-transaction transactions. After getting the green signal from the Reserve Bank of India, now the banks have made preparations to increase the service charge for CAS and non-cash transactions from ATMs. This decision has been taken in view of the increase in the cost of services like ATM maintenance, MMS charge.
The RBI made this announcement by issuing a circular on the basis of recommendations of the committee it constituted in June 2019 under the Chairmanship of the Chief Executive, Indian Banks’ Association to review the entire gamut of ATM charges and fees with particular focus on interchange structure for ATM transactions.
“The recommendations of the panel were comprehensively examined. It is also observed that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014. A substantial time has thus elapsed since these fees were last changed,” the central bank said in its circular.
If this rule is easily understood, after the end of the free transaction limit, if you do cash or non-cash transactions from ATMs, then now you will have to pay more service charge than before. Earlier this service charge was fixed at Rs 20, which has now been increased to Rs 21.
After the order of RBI, this new rule will be implemented from January 1, 2022. Let us tell you that bank account holders can do free transactions up to 5 times in a month from their bank’s ATM. At the same time, you can do 3 free transactions from any other bank’s ATM.