RBI said late on Friday, “Beyond free transactions, a customer can be charged a maximum fee of Rs 23 per transaction.”
Applied taxes will also need to be paid by the customer.
The RBI had earlier approved an increase in ATM interchange fee that banks pay each other for Rs 19.
As per RBI guidelines, customers are allowed five free ATM transactions per month in their bank’s ATMs. Additionally, customers are entitled to a certain number of free transactions in other banks’ ATMs: three in metro centers and five in non-Metro centers. These transactions can be either financial or non-financially.
For more transactions than the free limit, banks charge on the basis of policies approved by their respective boards. This fee is usually passed to the customer by the card-zari bank, while the charge is paid to the bank where ATM transactions occur (aquiners). The RBI recently approved an increase of Rs 2 in the ATM interchange fee for cash withdrawal.
