The Reserve Bank of India has allowed various banks to make major changes in the rules related to ATM transactions. The Reserve Bank of India on Thursday allowed all banks to increase charges on cash and non-cash ATM transactions. This means that if you transact more than the free ATM transaction limit set earlier in a month, then the charges you had to pay earlier have increased. Earlier this fee was fixed at Rs 20, which has now been reduced to Rs 21. The new RBI orders will come into effect from January 1, 2022.
However, consumers can do 5 free transactions in a month from their bank’s ATMs. Apart from this, they can also do 3 free transactions from other bank ATMs at metro centers and 5 times at non-metro centers. RBI in its new guidelines has also allowed all banks to increase the interchange fee for ATM transactions. According to the new rules, for every financial transaction at all centers, now instead of 15 rupees, 17 rupees will have to be paid as interchange fee. Along with this, instead of 5 rupees will have to be paid for non-financial transactions. This arrangement will come into effect from 1 August 2021.