Mumbai: The Reserve Bank on Thursday allowed increase in the interchange fee structure of ATM transactions from Rs.15 to Rs.17. The new rates will be effective from 1st August 2021.
RBI has allowed the hike in interchange fee considering the increasing cost of ATM deployment and maintenance.
Last time the interchange fee was changed in August 2012 while the charges payable by the customers was revised in August 2014.
The card issuing bank pays an interchange fee to the operator of the ATM when a customer makes a transaction at an ATM that does not belong to the card-issuing bank.
Meanwhile, to compensate the banks for the higher interchange fee, RBI has allowed increase in customer charges beyond the free monthly limit to Rs. 21 from the existing Rs.20. The new rates will be effective from 1st January 2022.
Customers are currently get five free transactions (inclusive of financial and nonfinancial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, the ceiling / cap on customer charges is Rs. 20 per transaction.