RBI allows banks to raise ATM transaction charges: How it affects customers

The Reserve Bank of India (RBI) has allowed banks to raise ATM transaction charges, based on recommendations of a committee. The central bank has allowed banks to increase interchange transaction fees and charges on non-financial transactions. Here is all you need to know.

The Reserve Bank of India (RBI) has allowed banks to hike automated teller machine (ATM) transaction charges on the recommendations of a committee. The central bank released a circular on Thursday, allowing banks to hike interchange fees per transaction through ATMs and non-financial transactions as well. Banks will be able to raise ATM transaction charges from August 1, 2021. The RBI noted that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014.