ATM charge increase is pinching consumer amidst pandemic
Here are 5 ATM cash withdrawal rule changes going into effect. It’s ridiculous that RBI in the middle of a pandemic is increasing burden on consumer. Can LocalCircles members give their views if this should be opposed or taken to court. Can there be a survey LocalCircles
1] Free cash withdrawal limit from own bank's ATM: Bank customers are now eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.
2] Free ATM transaction limit from other bank: Bank ATM card holders are now eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres.
3] Hike in charges on ATM cash withdrawal beyond free limit: The RBI has allowed banks to increase charges on ATM transactions beyond free ATM transaction limit.
"To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022," the RBI circular announced.
4] Rise in intercharge fee: The RBI has allowed increase in interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be effective from 1st August 2021. more
1] Free cash withdrawal limit from own bank's ATM: Bank customers are now eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs.
2] Free ATM transaction limit from other bank: Bank ATM card holders are now eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres.
3] Hike in charges on ATM cash withdrawal beyond free limit: The RBI has allowed banks to increase charges on ATM transactions beyond free ATM transaction limit.
"To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022," the RBI circular announced.
4] Rise in intercharge fee: The RBI has allowed increase in interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be effective from 1st August 2021. more
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Most of the comments are from the point of view of an elite or well to do middle class people. Banks are the repository of our own funds. In the past, tellers at bank counters would give out cash (without any charges). Today, you pay for getting your own money because banks chose to put in a machine. Technology is good but why must people be penalised for it? A charge on customers to withdraw their own money is nothing short of a penalty. Leave alone the elite and middle class. Most of the people in India deal in cash and have small savings. Lumpsum monthly withdrawal and limiting small transactions is cruel. What is small for you, is not small for everyone. Withdrawing huge amounts lumpsum defeats the purpose of safe-keeping money with banks. more
Jun 16
Are we going overboard with this? The fees has been increased from 20-21 and financial transactions from 15-17. So how many additional transaction is one doing per month? 10? That is a MASSIVE increase of 20 rupees per month. Be serious. I am pretty sure whoever is doing these transaction is spending more on petrol, cigarettes, etc. I do agree there is some serious problem with the banking system where the profits are so high for public sector banks also. this despite them claiming NPAs are high. So where are these profits coming from? Not from ATM fees etc, I am sure. So some deep investigation is required to figure out why the banking system is squeezing the customers so much to stay profitable at that level. All public sector banks should be immediately taken off the stock market and should stay non-profitable with no more than 10% margin for the year. Rest should go back to the government and no incentives to the MDs - their salaries are already quite good. more
Jun 15
The Rules are correct . 5 transactions per month are Free with your Bank ATM . Peoples are misusing the ATM Facilities. It is difficult to keep tracking of more transactions of Rs. 500 / 400 / 300 . Instead take Lumpsum amount which needed for 15 days. so 4-5 withdrawal is OK per month. N O NEED to write on social media. more
Jun 15
Indian Banks are over burdened with mounting non-performing assets (NPAs), day to day increasing establishment expenses, decreasing margin between interest paid (on deposits received from customers) and interest received (from the borrowers) and various un-estimated & unforseen expenses & losses with a very limited avenues for banks for additional income, its customers are targeted for the same from time to time. Just look at the history of Indian Banks around two decades back, 99% of the services now chargeable were free. Hence, looking to the important roles being played by our banks in nation's economy, I wish, we can and we should stand behind our banks with little sacrifices. more
Jun 14
There is a saying 'If one falls down, beat him more so that he can never get up'. Penalising common man for helping banks to survive?. Senseless officials. These kind of stupid rules will only discourage people from depositing money in the bank. The Government should know that black money is with bureaucrats, politicians and their benami business partners.... not with middle class citizens. more
Jun 13
