RBI proposes to change the ATM transaction charges for other bank ATMs

The ATM charges for cards used in other bank ATMs are likely to increase. The Reserve Bank of India in its monetary policy announced on 6 June 2019, has proposed to review the ATM interchange fee structure. The ATM interchange fee structure provides the charges applicable for using ATMs of banks other than the issuing bank. 
 
A certain number of transactions from non-issuing bank’s ATM are allowed by the issuing bank but on exceeding a limit, all further transactions are charged. Such charges differ from one issuing bank to another.
 
At present, ICICI Bank offers three initial transactions in a month free of cost in six metro locations. In other locations, the number of free transactions offered is five. Subsequently, the charges levied by ICICI Bank are Rs 20 per financial transaction and Rs 8.50 per non-financial transaction as mentioned on bank’s website. 
 
State Bank of India offers same number of free transactions in metro and non-metro locations. Afterwards, the charges stand at Rs 20 plus GST for financial transaction and Rs 8 plus GST for non-financial transaction. 
 
In the Statement on Developmental and Regulatory prices, RBI has announced, " Usage of Automated Teller Machines (ATMs) by the public has been growing significantly. There have, however, been persistent demands to change the ATM charges and fees. In order to address these, it has been decided to set up a Committee involving all stakeholders, under the chairmanship of the Chief Executive Officer, Indian Banks' Association (IBA), to examine the entire gamut of ATM charges and fees. The Committee is expected to submit its recommendations within two months of its first meeting. The Composition and Terms of Reference of the Committee will be issued within a week." 
 
The Confederation of ATM industry (CATMI) has been making demands for restructuring the ATM charges with a view to keep a check on losses.
 

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