The Reserve Bank of India on Thursday permitted banks to increase charges for cash and non-cash ATM transactions beyond free monthly permissible limit from next year.
Bank customers will have to pay Rs 21 per transaction, instead of Rs 20, with effect from January 1, 2022, if they exceed the monthly limit of free transactions. "To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction.
This increase shall be effective from January 1, 2022," the RBI said in a circular. However, customers will continue to be eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They would also be able to do three free transactions from other bank ATMs in metro centres and five in non-metro centres.
Also, effective August 1, 2021, banks are allowed to increase interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres, the circular said. ATMs are deployed by banks for serving their own customers and also provide services to other banks' customers as acquirers where they earn interchange income.