RBI to charge on ATM withdrawal above INR 5000?

The Reserve bank of India panel has now advised charging customers for the cash withdrawal they make above inr 5000 from the ATM. They have asked to ask them to pay the ATM fees for every transaction. It was revealed by the right to information petition. RBI yet still not publish the report.

But the report says- “To discourage high cash withdrawals from ATMs, only cash withdrawal transactions up to (and including) ₹5,000 to be considered for free transactions. Banks may levy charges on the customer for every individual transaction above ₹5,000,”

RBI had to set up the panel in order to review the ATM charges in June, 2019. according to the panel, it may not be done because the cost of operating the ATM has gone up and the interchange fees and the cap on customer for their ATM usage has not been reviewed since long. But since there is lack of new ATM deployment, it may be a tough task.

ATM interchange fee is already being paid by the bank that issues the card to the user. And this is the reason why bank also discourage the customers from using the other bank’s ATM for withdrawing money.