Starting August 1, bank customers will no longer have to wait for a working day to do important transactions such as pension, salary transfers and EMI payments etc. The Reserve Bank of India (RBI) has allowed banks in the country to implement changes ranging from ATM interchange free hikes to lender's revising their overall banking charges. Here are the important changes to banking services that account holders should take note of.
Hike in ATM Withdrawal Fees
In June, RBI had updated its rules regarding the interchange fees for ATM cash withdrawals. The interchange fee on ATM withdrawals has been hiked to Rs 17 from the initial Rs 15. This ATM cash withdrawal fee hike will come into effect from August 1 and the charges will apply only to financial transactions. The fee was hiked on account of charges that go towards the upkeep of ATM machines. The interchange fee is applicable when a bank's customer withdraws cash from the ATM on another bank.
ICICI Bank Revises Charges
ICICI will introduce revised limits on cash transactions from August 1 onwards. The lender has also revised ATM interchange and cheque book charges for its domestic savings account holders. All these charges will be applicable from August 1 and will apply to both deposits and withdrawals.
For ICICI Bank customers the first three transactions will be free of charge in the metro cities of Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. Customers in other locations will get five free transactions. If customers cross the said limit, they would be charged Rs 20 per financial transaction and Rs 8.50 for non-financial transactions.
Salary, pension and EMI payment rules
From August 1 onwards, bank customers will no longer have to wait for a working day to perform important transactions such as pension, salary and EMI payments. This is due to the RBI changing the rules of the National Automated Clearing House (NACH) which is used to facilitate the payment of various bills, loan EMI, mutual investment and even insurance premium payment. Currently, the NACH facilities are only available to customers on weekdays (Monday to Friday).
After changes made to NACH are implemented, bank customers will not have to wait for a working day for their salary or pension to be credited into their account. From August 1 onwards, customers will be able to perform these transactions any day of the week, including weekends.
India Post's revised charges to come into effect
From August 1 onwards, India Post Payments Bank (IPPB) will charge customers for each doorstep service they request. IPPB customers will have to pay Rs 20 plus GST each time they avail of the doorstep banking (DSB) service. The bank sends local postmen or Gramin Dak Sevaks to the customer's doorstep. There is no limit on the number of transactions a customer can perform during a DSB visit. However, if during the same visit another customer performs a transaction, he/she would have to pay the service fee.
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