As the Reserve Bank of India (RBI) has approved a hike in ATM interchange fees, now the customers will have to pay a little extra while withdrawing cash from ATMs from May 1.
New Delhi: Attention bank customers. Starting from ATM withdrawal charge to FD interest rates, a list of financial changes will come into come into effect from May 1, affecting citizens across the country. The most prominent change among others would be the revised framework for ATM transaction charges as the government is pushing ahead with its drive to make the rural banking system efficient by consolidating the regional banks. Check the list of changes that will be effective from next month.
ATM withdrawal charges:
As the Reserve Bank of India (RBI) has approved a hike in ATM interchange fees, the amount a bank pays to another for using its services, now the customers will have to pay a little extra while withdrawing cash from ATMs from May 1.
As per the latest guidelines from the RBI, bank customers will now have to pay Rs 23 per transaction after exhausting their free monthly limit. This would be an increase from the current charge of Rs 21 per transaction.
In this case, the bank customers are allowed for five five free transactions per month (both financial and non-financial) at ATMs of their own bank. They will also be allowed three free transactions per month at ATMs of other banks in metro cities. The customers will be allowed five free transactions per month at ATMs of other banks in non-metro areas.
FD interest rates
Starting from May 1, savings account holders at RBL Bank will get interest payment every month instead of quarterly. According to an email from the bank, the highest interest rate, which depends on the balance kept, in its savings account stands at 7 per cent.
“The Interest will be calculated and accrued daily, based on the end of day balance in your account and will be paid/credited to your account on a monthly basis,” read the email.
In the meantime, the Shriram Finance Limited (SFL) also revised its Fixed Deposit (FD) interest rates, according to a report in The Economic Times. With this latest revision, the senior citizens aged 60 years or above will receive an additional interest of 0.50 per cent per annum, while women depositors will receive an extra 0.10 per cent interest per annum.
One State-One RRB drive
The Finance Ministry earlier this month has started its ‘One State-One RRB (Regional Rural Bank)’ drive in 11 states, under which 15 RRBs across 11 states will be amalgamated into one. This new scheme from the Centre will come into effect from May 1 and is intended for achieving better operational efficiency and cost rationalisation.
“The Central Government hereby provides for the amalgamation of the said Regional Rural Banks into a single Regional Rural Bank, which shall come into effect on and from the 1st day of May, 2025 with such constitution, property, powers, rights, interests, authorities and privileges; and with such liabilities, duties and obligation,” a notification by the Finance Ministry said.
