ATM Service Fees Rise, Costing $ 21 Per Transaction As Of Today | Latest India News

Bank automated teller machines (ABMs) are all expected to increase the service charge per transaction from Saturday, following an order from the Reserve Bank of India (RBI) and customers will need to ??1 more beyond the free transactions allowed for cash and non-cash payment purposes.

In accordance with the RBI notification of June 10, 2021, as of January 1, 2022, banks were allowed to charge ??21, instead of ??20 with applicable taxes, if any, will be payable in addition.

However, customers are entitled to five free transactions (including financial and non-financial transactions) each month from their own ATMs.

They are also eligible for free transactions (including financial and non-financial transactions) from other ATMs, viz. three transactions in metropolitan centers and five transactions in non-metropolitan centers.

The last change in the structure of interchange fees for ATM transactions took place in August 2012, while fees payable by customers were last revised in August 2014.

The RBI notified the changes effective January 1, 2022, citing the increasing cost of ATM deployment and ATM maintenance expenses incurred by banks or white label ATM operators.

Ashwani Rana, Founder of Voice of Banking, said, “The increased service charge per ATM transaction will be charged to customers beyond a certain number of transactions authorized by the respective banks. This increase is only ??1 plus Goods and Services Tax (GST) which is very minimal for customers compared to maintenance fees paid by banks as before ??20. “

Nipun Jain, President and CEO of RapiPay Fintech, clarified, “Consumers who withdraw cash using our micro-vending machines and the Aadhaar Activated Payment System (AEPS) will not be affected by the recent RBI guideline to increase ATM transaction fees (applicable after customers have used up the free month limit). “

“We believe this will drive the already growing demand for cash withdrawals through AEPS and micro-vending machines at our direct outlets and help us achieve our goal of increasing financial inclusion in deeper geographies. and remote areas like the Northeast, Kashmir, Ladakh, and Uttrakhand. We have sold over a lakh of Micro ATMs since we started operating last year. The average size of our ticket withdrawals went from ??3500 to ??3,800, with a 25% CAGR growth in micro vending machines over the past year, ”Jain added.