If you use ATM then this news is for you. Let us tell you that the charge of withdrawing money from ATM is going to increase. The Reserve Bank of India (RBI) plans to increase the maximum fee and ATM interchange fee, which can be recovered from customers if the banks exceed the range of ‘5 free transactions’. This increase in charges will mean that banking customers will have to spend more money from their pockets to withdraw cash from ATMs.
The National Payment Corporation of India (NPCI) has recommended to increase the maximum cash transaction fee from the current ₹ 21 to ₹ 22 per transaction after the completion of the limit of five free transactions. Payment regulator NPCI has also recommended to increase the ATM interchange fee from Rs 17 to Rs 19 for cash transactions after consulting businesses. It has been recommended to increase the fee from ₹ 6 to ₹ 7 for non-speed transactions.
What is ATM interchange fee?
The ATM interchange fee is the fee that one bank offers to another bank to use ATM services. These fees are usually one percent of the transaction and are often added to the customer’s bill. Banks and White-Lable ATM operators have agreed to the NPCI plan to increase the fees for metro and non-Metro sectors. The Reserve Bank of India and NPCI did not respond to the development.
