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ATM Withdrawals to Get Costlier! RBI Plans to Increase Fees.

Cash Withdrawal from ATMs: The Reserve Bank of India (RBI) is planning to raise the fees associated with going over the five-free transaction limit as well as the ATM interchange fees. This information was provided in a news portal report.

ATM Cash Withdrawal: The Reserve Bank of India (RBI) is planning to raise the fees associated with going over the five-free transaction limit and ATM interchange fees, making it more costly to withdraw cash from an ATM. Hindu BusinessLine provided this information in a report on Tuesday. Customers will now have to pay more out of pocket to use an ATM to withdraw cash. 

Cash Withdrawal from ATMs

How much will the fee go up?

What is the planned charge increase? The National Payments Corporation of India (NPCI) has suggested raising the maximum cash transaction cost from the present level of Rs 21 to Rs 22 once the free limit is used up five times, according to the news portal’s article, which cited persons with knowledge of the situation.

After consulting with the sector, payments regulator NPCI has also suggested raising the ATM interchange fee for cash transactions from Rs 17 to Rs 19.

Let us inform you that withdrawals from an ATM operated by a different bank that exceeds a specific limit are subject to an interchange fee. In other words, it is the sum that a bank pays another bank in return for the use of the ATM service. Following the ATM transaction, it is also noted on the bill. 

The RBI meets to discuss this.

The report claims that NPCI’s proposal to raise fees in both urban and non-metro areas has been approved by banks and white-label ATM operators. NPCI and the Reserve Bank of India have not yet responded to this development, though.

According to a person acquainted with the situation, the news portal stated that “the RBI formed a second committee headed by the CEO of IBA, which included officials from SBI and HDFC Bank.”

The RBI meets to discuss this.

He added, “We suggested this in September of last year after evaluating the costs for banks in the public and private sectors. For metro areas, we stated that the NPCI’s guideline may be maintained; however, the true problem lies in rural and semi-urban areas. 

Operating an ATM is becoming more expensive.

The report claims that the cost of operating ATMs in non-metropolitan areas has gone up because of growing inflation, financing prices, which have gone up by 1.5–2% over the past two years, as well as increased transportation, cash replenishment, and compliance costs.

Operating an ATM is becoming more expensive.

Read More: RBI Hiring: Earn Hourly Pay! Check Eligibility & Selection Process Now!

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