Key changes that will impact ATM fee, IPPB banking, Salary, EMI from August 1

Team Udayavani, Jul 31, 2021, 1:29 PM IST

Starting tomorrow (August 1) a slew of changes that will affect the day-to-day banking operations, as well as impact other sectors of the economy, will come into force.

The changes range from ATM interchange fee hikes to revisions in overall banking charges

RBI Interchange Fee hiked:

Earlier in June the Reserve Bank of India (RBI) allowed banks to hike the interchange fee per transaction from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres, the circular said.

The interchange fees is applicable on transactions where a user of a bank which issued an ATM card to him uses it at the machine of another bank. This change is bound to be transferred to customers using their ATM cards at various outlets.

The RBI said the charges have been allowed to be increased given the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by banks/white label ATM operators, as also considering the need to balance expectations of stakeholder entities and customer convenience.

Apart from this charges for cash and non-cash ATM transactions beyond free monthly permissible limit will become expensive from January 1, 2022, as bank customers will have to pay Rs 21 per transaction, instead of Rs 20.

Salary, EMI payment related:

As per the RBI mandate, the National Automated Clearing House (NACH) will be operational on all days of the week (including weekends and holidays), effective August 1, 2021. NACH, a bulk payment system operated by the National Payments Corporation of India (NPCI) facilitates one-to-many credit transfers such as payment of dividend, interest, salary and pension. It also provides the facilities to make payments regarding to electricity, gas, telephone, instalments towards loans, investments in mutual funds and insurance premiums.

Revision in banking charges by IPPB:

Earlier this month, the India Post Payments Bank (IPPB) said that it will start charging Rs 20(plus GST) for customers who avail of its doorstep banking services. This will be applicable from August 1. It also clarified that there is no limit on the number of transactions when an IPPB personnel visits a customer’s home for doorstep service.

There will, however, be a ‘no charge’ clause attached for when one customer racks up multiple service requests. On the other hand, if more people want to use the IPPB doorstep delivery service it will be classified as a DSB delivery and will be charged, according to reports.