With effect from August 1, 2022, banks have increased the interchange fee. Now instead of 15 for financial transactions, a fee of Rs 17 per transaction and for non-financial transactions will be Rs 6 per transaction instead of 5.

RBI has allowed banks to increase the charges on cash withdrawals from ATMs. This rule is effective from 1 January 2022. Under this, 5 transactions will be free in the same bank ATM in a month and after that Rs 21 will be charged per transaction. On the other hand, if you use an ATM of any other bank, then only 3 transactions will be free in a month and after that, a fee of Rs 21 will be deducted for every transaction. Earlier it was Rs 15 then it was increased to Rs 17. After this 20 rupees and now 21 rupees. That means withdrawing money from ATMs, again and again, will be heavy.

Banks increased interagency fee

The Reserve Bank of India has allowed all banks to increase the interchange fee, after which the banks have increased it. Now instead of Rs 15, an interchange fee of Rs 17 will have to be paid on each financial transaction. On the other hand, for non-financial transactions, you will have to pay Rs 6 instead of 5. Whenever you use the ATM card of one bank in the ATM of another bank, then your bank has to pay a fee to the bank with the ATM on every transaction. This is the interchange fee and ultimately the banks collect it from the customers. So now whenever you use any other bank ATM, keep in mind that it is not free.

Banks also charge for keeping ATM

  • SBI charges Rs 125 per annum on the classic debit card.
  • SBI charges Rs 175 per annum on Yuva and Gold debit cards.
  • SBI charges Rs 250 on Combo Debit Card and Rs 350 on Platinum Card.
  • SBI charges Rs 300 on debit card replacement and Rs 50 on ATM PIN generation.
  • SBI gives 3 free transactions up to 1 lakh while in rural areas this limit is up to 5.
  • Punjab National Bank charges Rs 250 per annum on all RuPay, Visa, Gold, and Platinum.
  • Punjab National Bank charges Rs 150 per year as an annual maintenance charge.
  • Punjab National Bank allows 3 transactions in metro cities and 5 free transactions in nonmetro cities.
  • HDFC gives 3 free transactions on the savings and salary account in the metro and 5 at other places.
  • HDFC deducts a fee of Rs 21 per transaction after the free limit.
  • ICICI Bank charges Rs 150 per transaction after 4 free transactions.
  • Axis Bank does not charge for 4 free transactions or transactions of 1.5 lakh per month
  • Axis Bank charges Rs 150 per transaction for free or after withdrawal of 1.5 lakhs.

The first ATM was installed in 1987

HSBC installed the first ATM in Mumbai in 1987, since then 1 lakh 15 thousand 605 ATMs have been installed across the country. A total of 90 crore debit cards have been issued by various banks across the country as on 31 March 2021. The Indian Banks Association introduced network share in 1997, through which ATMs of any bank could be used in ATMs of any other bank.