To become ATM usage beyond the permitted free transactions

Customers will continue to be eligible for five free transactions per month from their bank’s ATMs

Using ATMs beyond the permitted free transactions for cash as well as non-cash purposes will cost more from Saturday. As per the Reserve Bank’s directive issued in June, banking customers will be required to pay Rs 21 per transaction with effect from January 1, 2022, for transactions in excess of the free permissible limit. Currently, banks are allowed to charge Rs 20 for such transactions through ATMs.

However, customers will continue to be eligible for five free transactions (including financial and non-financial transactions) every month from their own bank ATMs. They will also be eligible for three free transactions from other bank’s ATMs in metro centers and five in non-metro centres.

RBI had earlier allowed banks to increase the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and Rs 5 to Rs 6 for non-financial transactions across all centers with effect from August 1, 2021.

The fee has been increased to meet the rising cost of ATM deployment and ATM maintenance expenses incurred by banks/white label ATM operators, considering the need to balance the requirements of stakeholder entities and customer convenience. .

It may be noted here that the central bank in June 2019 under the chairmanship of the Chief Executive, Indian Banks’ Association to review the entire gamut of Automated Teller Machine (ATM) fees and charges with special focus on the interchange structure A committee was formed. For ATM transactions.

As on March 31, 2021, there were 1,15,605 onsite ATMs and 97,970 off-site automated teller machines. Around 90 crore debit cards issued by various banks were outstanding at the end of March 2021.

The first ATM in India was established in 1987 by HSBC in Mumbai. Over the next twelve years, around 1,500 ATMs were installed in India. In 1997, the Indian Banks Association (IBA) established Swadhan, the first network of shared ATMs that allowed interoperable transactions.


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