The Reserve Bank of India (RBI) has decided to allow increase in 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 from 1st August,2021.
It is due to the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by banks / white label ATM operators.
Further, from 1st January, 2022, they are allowed to increase the customer charges to Rs 21 per transaction to compensate the banks for the higher interchange fee and given the general escalation in costs.
Currently, customers are allowed for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs as well as from other bank ATMs (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.
However, applicable taxes, if any, shall be additionally payable. These instructions shall also apply, mutatis mutandis, to transactions done at Cash Recycler Machines (other than for cash deposit transactions).
Click here for official press release:
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