RBI redefines Interchange Fee and Customer Charges for ATMs
- The Reserve Bank of India has reviewed the charges and fees for ATM transactions based on the recommendation of Committee under the Chairmanship of the Chief Executive, Indian Banks’ Association.
- It must be noted that the last change in interchange fee structure for ATM transactions was done in August 2012, while the charges payable by customers were last revised in August 2014. The new ATM charges as defined by RBI are as under:
- interchange fee per transaction for financial transactions= Rs 15 (old) to Rs 17 (new) (This shall be effective from August 1, 2021.)
- interchange fee per transaction for non-financial transactions= Rs 5 (old) to Rs 6 (new) (This shall be effective from August 1, 2021.)
- Presently banks are allowed to charge from customers a maximum of Rs 20 per transaction (after free ATM transactions are exhausted). RBI has increased this limit to Rs 21 per transaction w.e.f January 1, 2022.
- Number of free ATM transactions as mandated by RBI is given below. (It must be noted that banks can give more free transactions as per their wish.)
- Number of free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs (metro/non-metro city)= 5
- Number of free transactions (inclusive of financial and non-financial transactions) from other bank ATMs (metro city)= 3
- Number of free transactions (inclusive of financial and non-financial transactions) from other bank ATMs (non-metro city)= 5
- These instructions shall also be applicable on Cash Recycler Machines (other than for cash deposit transactions).
Points to remember:
- What is the interchange fee per transaction for financial transactions that banks can charge w.e.f August 1, 2021?= Rs 17.
- What is the interchange fee per transaction for non- financial transactions that banks can charge w.e.f August 1, 2021?= Rs 6
- What is the maximum amount that banks can charge from customers per transaction after free ATM transaction are over?= Rs 20.
- What is the maximum amount that banks can charge from customers (per transaction) w.e.f January 01, 2022, after free ATM transaction are over?= Rs 21
- remember various free transaction limits
Source: RBI