The Reserve Bank of India (RBI) has increased the interchange fee that banks can charge on ATM transactions recently. For financial transactions, the interchange fee has been raised from Rs 15 to Rs 17 and it has been hiked from Rs 5 to Rs 6 for non-financial transactions. From August 1, new rates will be applicable.
Banks charge an interchange fee from merchants processing payments through credit cards or debit cards.
Changes in ATM cash withdrawal rule
Every month, customers are eligible for five free transactions, inclusive of financial and non-financial transactions from their own bank ATMs. Three free transactions in metros and five in non-metros from other banks ATMs.
Currently, Rs 20 per transaction is charged after the free transaction limit. This charge will be increased to Rs 21 from January 1.
ICICI Bank's ATM cash withdrawal, cheque-book charges from August 1
Revised limits of cash transactions, ATM interchange, and cheque-book charges have been released by the ICICI Bank. For domestic savings account holders including salary accounts, these revised charges will be applicable. This will come into effect from August 1.
SBI's ATM cash withdrawal, cheque-book charges
In July, service charges for withdrawing cash from SBI's ATMs, and bank branches were revised by the SBI. Charges will be recovered for Basic Savings Bank Deposit (BSBD) Accounts beyond the free four cash withdrawal transactions including ATM and branch.No charges will be levied on SBI account holders for the first 10 cheque leaf. After the 10 cheque leaf limit, charges will be subject to charges going to become effective.