ATM Withdrawals will Cost the Customer Rs 173? Check What the Govt said about this

News Guard Verified Post

The (RBI) Reserve Bank of India has set some rules for withdrawing money from (ATM) Automated Teller Machines or doing Non-financial transactions using ATMs. This is to ensure that people are using ATMs responsibly, safely, and correctly. Since January of this year, the guidelines for monthly limits on withdrawals for debit and credit card users have been revised, and cardholders now need to pay a certain amount of money after exceeding that withdrawal limit.

After the fake notice went viral, there was a lot of chaos on social media. However, the government has been clear and ruled out fake news. If you make more than four withdrawals from an ATM in a month, Rs 173 will be deducted from your account, according to a message that is currently going around on social media. The message said that starting next month, there will be a charge of Rs 150 for every transaction made at banks, in addition to the Rs 23 service charge.

For card users, this charge will apply to any month in which more than four transactions are made.
The Press Information Bureau (PIB) has denied rumors that the government is planning to ban social media. PIB tweeted a picture of the false news article to dispel the rumors.

The caption for the image says, “This is not true. You can make five transactions from your bank’s ATM without being charged every month. After that, you’ll have to pay Rs 21 per transaction or any taxes that may apply separately.”

Related ATM Service Charges 2022: New Charges, Withdrawl Limit, Etc

ATM Withdrawal Rules of Bank

In June 2019, the Reserve Bank of India set up a Committee, chaired by the Chief Executive of the Indian Banks’ Association, to review ATM charges and fees with a focus on interchange structure for ATM transactions. Two years later, RBI revised these charges in June 2021, noting that it had been some time since the last update.

“As it has been a significantly long time since these fees were last updated,” the statement said, “and considering the rising costs of ATM deployment and maintenance for banks/white label ATM operators, as well as the need to maintain a balance between the expectations of stakeholder entities and customer convenience, it has been decided as follows.”

The article said that customers can make five free transactions from their own bank’s ATMs and ATMs from other banks. This includes both financial and non-financial transactions. In metro centers, customers are only allowed three free transactions, but in non-metro centers, they are allowed five transactions.

“As stated in the statement, beyond the free transactions, the ceiling /cap on customer charges is Rs 20 per transaction,” it said. “To make up for the higher interchange fee and given the general escalation in costs, banks are allowed to increase the customer charges to Rs 21 per transaction. This increase will be effective from January 1, 2022.”

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