New Delhi: Following an instruction from the Reserve Bank of India (RBI), all banks' Automated Teller Machines (ATMs) are poised to increase service charges per transaction starting Saturday, and users will have to pay Rs 1 more than the allowable free transactions for cash and non-cash uses. According to an RBI notification dated June 10, 2021, banks would be allowed to charge Rs 21 instead of Rs 20 beginning January 1, 2022, with related taxes, if any, to be paid separately.
Customers, on the other hand, are entitled to five free transactions per month from their own bank ATMs (including both financial and non-financial transactions). They are also entitled to three free transactions (including financial and non-financial transactions) from other bank ATMs in metro areas and five free transactions in non-metro areas.
The interchange fee structure for ATM transactions was last changed in August 2012, while customer costs were last altered in August 2014. The RBI has announced the amendments, which will take effect on January 1, 2022, citing the rising cost of ATM installations and maintenance costs borne by banks or white-label ATM providers.