EXCLUSIVE! Bank customers may get another good news soon. Next month, RBI may reduce the transaction charge levied on cash withdrawal from ATMs of other banks, according to sources. ATM transaction charge is being reviewed by the RBI after it has already eliminated charges on money transfer through NEFT and RTGS. According to a senior RBI official, soon the central bank can take a final decision in this regard. The committee formed to review the ATM transaction charges is expected to submit its report soon.
Good news likely in August
According to sources, ATM transaction charges will not be completely done away with. Rather, a reduction in charges is being considered. The committee has prepared some suggestions to give relief to bank customers. The panel’s report will be submitted to RBI soon.
Sources said the committee has reviewed the ATM transaction fee structure based on the increase in ATM usage in the last few years has increased. If sources are to be believed the committee may submit its first report in August. The committee will recommend whether ATM transaction charges should be reduced or not and, if yes, they what should be the amount.
What is the Interchange Fee Structure
The Interchange Fee Structure determines the charge a bank customer has to pay while using the ATM of other banks. At present, no other charge is levied on a certain number of transactions carried out by customers at other banks’ ATMs. Banks charge a certain amount when this limit is breached by the customer. For this, every bank has fixed its interchange fee structure.
How much banks charge
Take the example of ICICI Bank. It doesn’t charge for the first three transactions of the month in metro cities. At the same time, in five cities, five charge-free transactions are allowed. After this, fees of 20 rupees per transaction is collected from customers. SBI also charges 20 rupees. In the country’s largest commercial bank SBI, three transactions per month are free in six major metro cities. At other places, the first five transactions of the month are free. After this, the bank charges Rs 20 ( excluding GST).
Apart from VG Kanan, CEO of the Indian Banks Association (IBA), the CEO of National Payment Corporation Dilip Asbe, CGM Giri Kumar Nair of SBI, Group Head of HDFC Bank, Sampat Kumar, Director of Confederation of ATM Industry Srinivas And Sanjeev Patel, CEO of Tata Communications Payment Solutions.