A bevy of changes will come into effect from August 1 including an increase in ATM interchange fees and an amendment in National Automated Clearing House (NACH) rules. These tweaks will impact banking operations, and even other sectors.
Here’s a list of major changes that will take place from August 1:
ATM interchange fees to be hiked
The Reserve Bank of India (RBI) has allowed lenders 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. These changes will come into force from August 1, 2021.
The RBI said that the charges have been allowed to increase 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 the expectations of stakeholder entities and customer convenience.
NACH bulk payment system to be available on all days
The Reserve Bank of India (RBI) has decided that the National Automated Clearing House (NACH) payment system will be made available on all days of the week from August 1, 2021.
NACH is currently available only on days when banks are open.
The NACH system can be used for making bulk transactions towards the distribution of subsidies, dividends, interest, salary, pension etc., and also for those towards the collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds and insurance premium, among others.
ICICI Bank to revise select charges
Private sector lender ICICI Bank is all set to revise various charges related to cash transactions, ATM interchange and cheque books, among others, for its savings account holders. These revised charges will also be applicable from August 1, according to the bank's official website.
The lender has allowed four free cash transactions per month, a limit beyond which a fee of Rs 150 per transaction would be charged. The value limit (the total of all deposits and withdrawals) will be inclusive of both the home and non-home branch transactions. In value terms, the limit for free transactions for ICICI Bank customers at the home branch would be Rs 1 lakh per account per month.
No charges will be levied for cash transactions up to Rs 25,000 per day at branches other than the home branch. Above Rs 25,000, Rs 5 will be levied per Rs 1,000 subject to a minimum of Rs 150. For third-party cash transactions (the total of deposits and withdrawals), up to a limit of Rs 25,000 per day, a charge of Rs 150 per transaction will be levied.
First Published: IST