- Debit-credit card usage is expensive
- Rate hike for non-financial transactions from August 1
In the last few days, it has been news that the RBI has issued a notification that banks can fix fees. An additional charge of up to Rs 21 can be levied. Industry insiders say the move could lead to higher rates for debit and credit card usage.
There were reports that the revised rates would come into effect from January 1, 2022. However, there are indications that the rate hike for ATM withdrawals may come into effect from August 1. Not only withdrawals but also rates for non-cash transactions will go up.
There will now be a charge of Rs 6 per non-financial transaction, including taking a mini statement and checking the balance. Earlier it was charged at Rs. You will also have to pay extra to withdraw money from the ATM after the limit. Therefore, using a credit or debit card can be costly. Last month, banks’ interchange fees were raised to Rs 17.
At the same time there is no change in the range of free payments that can be made with a debit card. You can make up to five free transactions from your own bank branch ATM. There will be three free transactions in metro cities from other banks’ ATMs. Five transactions can be done in non-metro cities. A total of 90 crore debit cards have been issued by various banks in the country. This includes not only cash withdrawals but also non-financial transactions, including mini statements.