- The rules include higher charges on transactions beyond the free permissible limit, a new free ATM transaction limit and a rise in interchange fee.
- The rules were changed as per the recommendations of the committee setup under the Chairmanship of the Chief Executive, Indian Banks’ Association. The committee was formed in June 2019. The role of the committee was to review ATM charges and fees with a particular focus on interchange structure for ATM transactions.
- The RBI has allowed a free cash withdrawal limit from its own bank. Due to this rule, customers will now be able to perform five free financial and non-financial transactions every month from their own bank ATMs.
- Also, ATM cardholders can perform three free financial and non-financial transactions in metro centres while five in the non-metro transaction from other bank ATMs.
- The banks are allowed by RBI to raise charges on ATM transactions beyond the free ATM transaction limit.
- The interchange fee amount is raised from Rs 15 to Rs 17 for financial transactions while from Rs 5 to Rs 6 for non-financial transactions, which will be effective from 1st August 2021.
- The customer of the bank will have to pay Rs 21 instead of Rs 20(currently) for each ATM cash withdrawal beyond the free transaction limit in effect from 1st Jan 2021.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
Question:
Q.1 As per the new rules for ATM cash withdrawals, RBI has allowed an increase in interchange fee per transaction from Rs 15 to Rs ___or financial transactions and from Rs 5 to Rs___ or non-financial transactions in all centres?
a. Rs 17, Rs 6
b. Rs 17, Rs 8
c. Rs 19, Rs 9
d. Rs 18, Rs 10
a. Rs 17, Rs 6
b. Rs 17, Rs 8
c. Rs 19, Rs 9
d. Rs 18, Rs 10
