RBI allows banks to increase charges for ATM withdrawals

The Reserve Bank of India on Thursday allowed banks to raise charges on using ATM machines to Rs 21 per transaction.

In a notification, the central bank said the maximum charges will be revised from Rs 20 per transaction. The new charges will be effective from January 1, 2022.

According to the RBI, the revised charges will compensate banks for higher interchange fee – which a merchant bank pays to the card-issuing bank each time a customer swipes their credit or debit card.