The RBI increases the fees banks pay for the use of other lenders’ ATMs

Business


MUMBAI: The Reserve Bank of India (RBI) has uploaded the exchange fee for ATMs at Rs 17 from Rs 15 as of January 2022. The exchange, which is the charge banks pay each other when their customers use another lender’s ATMs, last reviewed in 2012.
While the 17 rupee fee will apply to withdrawals, for non-financial transactions the exchange will increase from 5 to 6 rupees. ATM the withdrawal fee will go to 21 rupees from 20 rupees if they deplete your free transactions.
Customers are eligible for five free transactions (including non-financial transactions) each month from their own banks’ ATMs. They are also eligible for three free transactions from other bank ATMs in metropolitan areas (five in non-metropolitan centers).
“This will help us not only better serve customers, but also implement additional ATMs, which are particularly needed in semi-urban and rural locations, to provide financial access and enable financial inclusion. It will also bring much-needed relief to the ATM industry, ”said Rustom Irani, MD & CEO, Hitachi Payment services.
The RBI said the decision was made given the increasing cost of ATM implementation and ATM maintenance expenses incurred by banks / white-label ATM operators, as well as considering the need to balance the expectations of the interested entities and the convenience of the client.
The Confederation of the ATM Industry said the measure will incentivize banks, management service providers and white-label ATM operators to significantly increase ATM penetration in semi-urban and rural areas thereby boosting financial inclusion.

.



Source link