INSUBCONTINENT EXCLUSIVE:
Customers would continue to be eligible for five free transactions every month from their own bank ATMsUsing ATMs beyond the permissible
free transactions for cash as well as non-cash purposes will cost more from Saturday
As per the Reserve Bank directive issued in June, the banking customers would be required to pay Rs 21 per transaction with effect from
January 1, 2022 for transactions beyond the free permissible limit
Presently, banks are allowed to charge Rs 20 for such transactions through ATMs.Customers would, however, continue to be eligible for five
free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs
They would also be eligible for three free transactions from other bank ATMs in metro centres and five in non-metro centres.The RBI had
earlier allowed banks to increase interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for
non-financial transactions in all centres with effect from August 1, 2021.The charges have been increased to meet the increasing cost of ATM
deployment and expenses towards ATM maintenance incurred by banks/white label ATM operators, as also considering the need to balance
expectations of stakeholder entities and customer convenience.It may be noted here that the central bank had set up a committee in June 2019
under the Chairmanship of the Chief Executive, Indian Banks' Association to review the entire gamut of Automated Teller Machine (ATM)
charges and fees with particular focus on interchange structure for ATM transactions.There were 1,15,605 onsite ATMs and 97,970 off-site
automated teller machines as on March 31, 2021
About 90 crore debit cards issued by different banks were outstanding at end-March 2021.The first ATM in India was set up in 1987 by HSBC in
In the following twelve years, about 1,500 ATMs were set up in India
In 1997, the Indian Banks' Association (IBA) set up Swadhan, the first network of shared ATMs which allowed interoperable transactions.
