SBI Debit Card Users Attention: Charges On ATM Withdrawals To Cost More. Check Details

SBI ATM Withdrawal Limit, Charges: RBI has allowed the SBI to hike increase interchange fee per transaction from Rs 15 to Rs 17 for financial transactions

Written by: India.com Business Desk Edited by: Debjit Sinha

Updated: June 11, 2021, 1:05 PM IST

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New Delhi: There’s important news for the State Bank of India (SBI) Debit card users. Customers of India’s largest lender, the SBI, will now have to spend more on ATM cash withdrawals after the Reserve Bank of India (RBI) allowed the country’s largest lender to hike charges for ATM withdrawals. In the latest move, the Reserve Bank of India (RBI) has allowed the banks to hike the fee charged on cash withdrawal beyond the permitted free ATM transaction limit from Rs 20 to Rs 21 per transaction, with effect from January 1, 2022.

In a circular issued, the RBI allowed an 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 August 1, 2021.

Here’s Why RBI Allowed Banks To Raise ATM Withdrawal Fee

The RBI has done this to compensate the banks for the higher interchange fee and given the general escalation in costs. “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 Rs 21 per transaction. This increase shall be effective from January 1, 2022,” the RBI said in a notification on Thursday.

This means SBI customers will have to pay more for withdrawing money from ATM if they carry out transactions beyond the free monthly permissible limit. Apart from the cash withdrawal, the non-cash ATM transactions charges are also set to go up.

SBI ATM Withdrawal Rules/Charges

1. Like all other banks, the SBI Customers will also be eligible for 5 free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs
2. You can also transact at over 1.5 lakh ATMs of other banks linked to the National Financial Switch.  As per RBI guidelines, SBI ATM cardholders are also entitled to 3 free transactions in 6 Metro Centre (Mumbai, Delhi, Chennai, Kolkata, Hyderabad & Bengaluru) 5 free transactions (Financial and Non-Financial) in a calendar month (for Savings Bank account holders only) at other centres.
3. Transactions over the free limit will be chargeable as per the new rates.
4. Earlier, the RBI had put a ceiling cap of ₹20/transaction on cash withdrawal charges. That ceiling cap has now been raised by the RBI to ₹21/transaction in view of the rising maintenance cost of ATMs.
5. This increase shall be effective from January 1, 2022.
6. Banks will also charge the Applicable taxes if any. It will be additionally payable.