Withdrawing money from ATM in india is going to be expensive from May 1, as the reserve bank of india (RBI) has approved the increase in ATM interchange fees. The new RBI regulations state that starting on May 1, consumers will be need to pay an additional Rs 2 for any transaction beyond the ATM's free limit. Cash withdrawals from ATMs now cost Rs 19 each transaction, up from Rs 17 previously.
Since the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) has authorized an increase in ATM interchange fees, using an ATM in india will become more costly starting May 1. customers who use ATMs more frequently for financial activities will therefore be subject to additional fees in addition to having to pay for withdrawals over a certain limit.
One bank pays another bank an ATM interchange charge in exchange for the other bank's ATM services. Customers pay this fee, which is a set sum for every transaction, as a banking expense.
The new RBI regulations state that starting on May 1, consumers will need to pay an additional Rs 2 for any transaction beyond the ATM's free limit. Cash withdrawals from ATMs now cost Rs 19 each transaction, up from Rs 17 previously.
In addition, an additional Rs 1 will be charged whenever the consumer uses the ATM for anything other than cash withdrawal, such as checking their balance. The official statement states that it will now pay Rs 7 per transaction, up from Rs 6 currently, to check the account balance.
The RBI made the decision to change these fees in response to demands from white-label ATM operators who claimed that their operations were being negatively impacted by growing operating costs. Customers, particularly those of small banks, are anticipated to be impacted by the fee rise, which will be implemented nationwide. These banks are particularly susceptible to cost increases because they rely on big financial institutions for ATM infrastructure and associated services.
ATMs were originally seen to be a revolutionary financial facility, but as digital payments proliferate, they are currently having trouble in India. The necessity for cash withdrawals has drastically decreased due to the simplicity of online wallets and UPI transactions.
According to government data, digital payments in india were worth Rs 952 lakh crore in FY14. This amount is expected to increase to Rs 3,658 lakh crore by FY23, signifying a significant move towards cashless transactions. customers who still use cash transactions may find this new fee increase burdensome.
Since the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) has authorized an increase in ATM interchange fees, using an ATM in india will become more costly starting May 1. customers who use ATMs more frequently for financial activities will therefore be subject to additional fees in addition to having to pay for withdrawals over a certain limit.
One bank pays another bank an ATM interchange charge in exchange for the other bank's ATM services. Customers pay this fee, which is a set sum for every transaction, as a banking expense.
The new RBI regulations state that starting on May 1, consumers will need to pay an additional Rs 2 for any transaction beyond the ATM's free limit. Cash withdrawals from ATMs now cost Rs 19 each transaction, up from Rs 17 previously.
In addition, an additional Rs 1 will be charged whenever the consumer uses the ATM for anything other than cash withdrawal, such as checking their balance. The official statement states that it will now pay Rs 7 per transaction, up from Rs 6 currently, to check the account balance.
The RBI made the decision to change these fees in response to demands from white-label ATM operators who claimed that their operations were being negatively impacted by growing operating costs. Customers, particularly those of small banks, are anticipated to be impacted by the fee rise, which will be implemented nationwide. These banks are particularly susceptible to cost increases because they rely on big financial institutions for ATM infrastructure and associated services.
ATMs were originally seen to be a revolutionary financial facility, but as digital payments proliferate, they are currently having trouble in India. The necessity for cash withdrawals has drastically decreased due to the simplicity of online wallets and UPI transactions.
According to government data, digital payments in india were worth Rs 952 lakh crore in FY14. This amount is expected to increase to Rs 3,658 lakh crore by FY23, signifying a significant move towards cashless transactions. customers who still use cash transactions may find this new fee increase burdensome.