If you frequently withdraw cash from ATM, then this news may be useful for you. Actually, there is a possibility of increase in the charge for withdrawing cash from ATM. According to the report, Reserve Bank of India (RBI) is planning to increase the charge for exceeding the free 5 transaction limit by banks and ATM interchange fees.

Citing people familiar with the matter, Hindu BusinessLine reports that the hike in charges means that the bank’s customers will have to pay more for withdrawing cash from ATMs. The National Payments Corporation of India (NPCI) has suggested that the maximum charge for customers withdrawing cash after 5 free transactions be increased from Rs 21 to Rs 22.

NPCI recommends increase in several charges

NPCI has also proposed to increase the ATM interchange fee. It has been recommended to increase the interchange fee for cash transactions from Rs 17 to Rs 19, while for non-cash transactions, it has been said to increase this charge from Rs 6 to Rs 7.

What is ATM interchange charge?

Let us tell you that interchange charge is the fee that one bank charges from another bank when a customer takes cash withdrawal or other services using the ATM of a bank other than his own bank. Suppose, your bank is SBI, but you use HDFC Bank’s ATM to withdraw cash. In this case, HDFC Bank charges interchange charge from SBI for processing your transaction.

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The post ATM Withdrawal Charges: ATM cash withdrawals to become costly? RBI plans to raise interchange fee first appeared on Rightsofemployees.com.