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ATM transaction charges for other bank ATMs likely to change: RBI sets up review panel

Normally, a certain number of such transactions are allowed free by the issuing bank.

ET Online|
Updated: Jun 06, 2019, 08.02 PM IST
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RBI monetary policy: What the rate cut means for your money
RBI monetary policy: What the rate cut means for your money
The charges you pay for using ATMs of other banks may change. The Reserve Bank of India (RBI) in today's monetary policy has announced the setting up of a committee to review the ATM interchange fee structure. This fee structure determines the charges you pay for using your ATM card at the ATMs of banks other than the issuing bank.

Normally, a certain number of such transactions are allowed free by the issuing bank. However, you are charged for using the ATMs of other banks for transactions beyond a certain number which may vary from one issuing bank to another.

In the Statement on Developmental and Regulatory prices, RBI has announced, " Usage of Automated Teller Machines (ATMs) by the public has been growing significantly. There have, however, been persistent demands to change the ATM charges and fees. In order to address these, it has been decided to set up a Committee involving all stakeholders, under the chairmanship of the Chief Executive Officer, Indian Banks' Association (IBA), to examine the entire gamut of ATM charges and fees. The Committee is expected to submit its recommendations within two months of its first meeting. The Composition and Terms of Reference of the Committee will be issued within a week."

Currently, ICICI Bank offers first three transactions in a month (inclusive of financial and non-financial) free of charge in six metro locations. In other locations, first five transactions (inclusive of financial and non-financial) are offered free of charge. Thereafter, Rs 20 per financial transaction and Rs 8.50 per non-financial transaction, as per the bank's website.

Similarly, State Bank of India offers same number of free transactions in both metro and non-metro locations. Thereafter it charges, Rs 20 plus GST per financial transaction and Rs 8 plus GST for non-financial transaction as mentioned on its website.

There has been a persistent demand by the Confederation of ATM industry (CATMI) to correct the fee structure in order to curb losses.
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