If you also withdraw cash from an ATM, then it can affect your expenses. Reserve Bank of India is soon planning to increase the limit of five free transactions for bank customers. Apart from this, ATM interchange fees can also be increased.

More charges will have to be paid for withdrawing cash-
According to a report, the National Payments Corporation of India has suggested that after five free transactions, the maximum charge for withdrawing cash from customers should be increased from Rs 21 to Rs 22. Apart from this, NPCI has also proposed to increase ATM interchange fees. It has been recommended to increase the interchange fee for cash transactions from Rs 17 to Rs 19, while for non-cash transactions, this charge has been said to be increased from Rs 6 to Rs 7.

What is an ATM interchange charge?

ATM interchange charge is the amount that a bank pays for using another bank's ATM. This charge usually affects customers, as banks charge it from the customer. This may cause customers to face additional charges when they use another bank's ATM.

Expenses will increase in rural and urban areas-

According to the report, banks and white-label ATM operators agree to this proposal of NPCI. This increase will not be limited to metros only, but will also be applicable in small towns and rural areas. The Reserve Bank of India (RBI) had constituted a committee of the CEO of the Indian Banks Association (IBA), State Bank of India (SBI), and HDFC Bank officials on this issue. This committee had recommended this after assessing the cost of the banking sector.

Decision taken due to rising cost-

Banking sector experts and ATM operators say that in the last two years, the cost of ATM operations has increased in rural and semi-urban areas. The main reasons for this are rising inflation, high interest rates, increased cost of cash refill, and increasing compliance expenses.

Although RBI and NPCI have not given an official statement on this issue, if this proposal is implemented, then those who withdraw cash from ATM may have to spend more money from their pocket.

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