RBI raises cap on fees for ATM cash withdrawals to Rs 23
Mumbai: The Reserve Bank of India (RBI) Friday raised by ₹2 the ceiling on the fee lenders can charge customers for ATM cash withdrawals to Rs 23. This maximum fee is applicable from May 1.
“Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction,” the RBI said late Friday.
Applicable taxes will also need to be paid by the customer.
The RBI had earlier approved an increase in the ATM interchange fee that banks pay one another to Rs 19.
As per RBI guidelines, customers are allowed five free ATM transactions per month at their own bank’s ATMs. Additionally, customers are entitled to a fixed number of free transactions at other banks’ ATMs: three in metro centres and five in non-metro centres. These transactions can be either financial or non-financial.
For transactions exceeding the free limit, banks charge fees based on their respective board-approved policies. This fee is typically passed on to the customer by the card-issuing bank, while the charge is paid to the bank where the ATM transaction occurs (the acquirer). RBI recently approved a Rs 2 increase in the ATM interchange fee for cash withdrawals.
