If you also withdraw cash from ATMs every month or do cash payments by not using digital payment, then this news may get a shock. Actually, withdrawing cash from ATMs can now be expensive. This is because the Reserve Bank is going to increase the fees on withdrawing cash from ATM. Let's know what is the whole matter…

The Reserve Bank used to give 5 cash withdrawal free in the month at present, but now RBI is planning to increase the charge and ATM interchange fees on more than the Limit of these 5 transactions. This information has been given on Tuesday in the Hindu business line report. This means that you have to spend more money to withdraw cash from ATM.

How much will the charge increase?

In its report, the Hindu Businessline, citing the people who know the case, said that the NPCI has recommended to increase the charge of withdrawing the cash from Rs 21 to Rs 22 after completing the free limit five times. Apart from this, NPCI has also recommended to increase the ATM interchange fees from Rs 17 to Rs 19 for cash transactions.

The interchange fee is put on withdrawing money after a limit from the ATM of another bank. That is, this is the fees paid by one bank to another bank instead of using ATM service.

RBI meeting

According to the report, banks and white-labeled ATM operators agree to the recommendation of NPCI to increase fees in metro and non-Metro cities. But yet the Reserve Bank of India and NPCI have not made any official comments in this matter.

The cost of running ATM is increasing

According to the report, increasing inflation and rising borrowing costs at the rate of 1.5-2 percent in the last two years, more spending on transportation, cash replenishment and cost of running ATMs in non-metro cities are increasing rapidly.