Description

Changes in ATM cash withdrawal Rule, See the new Rules

Date - 11 Jun 2021

The Reserve Bank of India (RBI) has changed some of the rules regarding ATM cash withdrawals. The new rules include high transaction fees in excess of the allowed free limit, a new free ATM transaction limit, and increased exchange fees. The changes are based on the recommendations of the Executive Committee formed in June 2019.

The Association of Indian Banks has reviewed all fees and charges for ATMs, focusing on the exchange structure for ATM transactions.

The new rules are given below -

1. Limit of free cash withdrawal at own bank- Now bank customers can make five free financial and non-financial transactions every month at their bank's ATMs.

2. Limit of free transactions at ATMs of other banks - ATM cardholders can make three free financial and non-financial transactions in metro centers, and five - in transactions outside the metro from ATMs of other banks.

3. Commission for withdrawing cash from ATMs in excess of the free limit - RBI has allowed banks to increase the commission for transactions in ATMs in excess of the limit of free transactions in ATMs.

4. Increase in exchange fees - From August 1, 2021, the transaction fee has changed from 15 to 17 rupees for financial transactions and from 5 to 6 rupees for non-financial transactions.

5. New fees for ATM cash withdrawals above the free transaction limit - the bank customer will have to pay Rs 21 (currently Rs 20) for each ATM cash withdrawal in excess of the free transaction limit effective January 1, 2022.

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