Bank clients must pay Rs 21 per transaction, as a substitute of Rs 20, with impact from January 1, 2022, in the event that they exceed the month-to-month restrict of free transactions.
“To compensate the banks for the upper interchange payment and given the final escalation in prices, they’re allowed to extend the shopper expenses to Rs 21 per transaction. This enhance shall be efficient from January 1, 2022,” the RBI stated in a round.
However, clients will proceed to be eligible for 5 free transactions (inclusive of economic and non-financial transactions) each month from their very own financial institution ATMs. They would additionally be capable to do three free transactions from different financial institution ATMs in metro centres and 5 in non-metro centres.
Also, efficient August 1, 2021, banks are allowed to extend interchange payment per transaction from Rs 15 to Rs 17 for monetary transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres, the round stated.
ATMs are deployed by banks for serving their very own clients and likewise present companies to different banks’ clients as acquirers the place they earn interchange revenue.
The RBI stated the fees have been allowed to be elevated given the growing value of ATM deployment and bills in direction of ATM upkeep incurred by banks/white label ATM operators, as additionally contemplating the necessity to steadiness expectations of stakeholder entities and buyer comfort.
It is to be famous right here that the central financial institution had arrange a committee in June 2019 underneath the chairmanship of the chief govt of Indian Banks’ Association to evaluate the whole gamut of automated teller machine (ATM) expenses and charges with explicit deal with interchange construction for ATM transactions.
The RBI stated the ideas of the panel have been comprehensively examined.
“It can also be noticed that the final change in interchange payment construction for ATM transactions was in August 2012, whereas the fees payable by clients have been final revised in August 2014. A considerable time has thus elapsed since these charges have been final modified,” it stated.
There have been 1,15,605 onsite ATMs and 97,970 off-site ones as on March 31, 2021. About 90 crore debit playing cards issued by totally different banks have been excellent at end-March 2021.
The first ATM in India was arrange in 1987 by HSBC in Mumbai. In the next twelve years, about 1,500 ATMs have been arrange in India. In 1997, the Indian Banks’ Association (IBA) arrange Swadhan, the primary community of shared ATMs which allowed interoperable transactions.