ATM cash withdrawal; The government clarified the charge information

Reserve Bank has issued specific guidelines regarding ATM withdrawal and other financial services. A cap or limit has been set for all debit / credit card holders regarding free cash withdrawals per month. Violation of this law requires a fixed fee to be paid. The government last updated the guidelines in this regard in January this year.

A news related to this went viral on social media recently. It was a penalty of Rs 173 for making more than four withdrawals from ATMs. If you make more than four transactions at an ATM, you will have to pay a tax of Rs 150 and a service charge of Rs 23. 150 rupees should be paid in the bank for all transactions from now on.

But the Press Information Bureau has now clarified the matter. It has been informed that the information spread is wrong. It has been informed that five ATM transactions every month can be done free of charge using the ATM of the bank where the account is held. The new notification states that if this limit is exceeded, 21 rupees will be charged per transaction and any applicable tax will be charged separately.

In 2019, the Reserve Bank had appointed a committee to set the limit for ATM transactions. The chief executive of the Indian Bank Association was appointed as the chairman and the rates were fixed. The rates are fixed keeping in mind the changing structure of ATM transactions.

These exchange rates were reviewed by RBI in June 2021. At that time, RBI had informed that the review is being conducted because more time has passed since the rates were fixed in 2019. The cost of maintenance of ATMs to banks and white label ATM operators has also been considered. RBI has informed that the new review has been done by including the convenience of the customers.

According to this, the customer can make five financial and non-financial transactions in a month at the ATM of his own bank. This limit is different in ATM of other banks. Its limit is five exchanges in metro cities and three exchanges in non-metro cities. Customers will have to pay a charge of Rs 20 per transaction when these limits are breached. There is only one change in this law from January 1, 2022. It is only that the charge to be collected from the customers has been increased to Rs.21 considering the increasing cost of the banks.