RBI Alert! Withdrawal of cash from ATM will be expensive from August 1, these transactions will also have to pay more charges

RBI Alert! Withdrawal of cash from ATM will be expensive from August 1, these transactions will also have to pay more charges

New Delhi, Business Desk. The Reserve Bank of India (RBI) recently announced an increase in the interchange fee charged by banks for ATM transactions. The interchange fee on financial transactions has been increased from Rs 15 to Rs 17. At the same time, the fee has been increased from Rs 5 to Rs 6 on non-financial transactions. These new rates will be effective from August 1, 2021. 

What is Interchange Fee

According to the Reserve Bank, an interchange fee is a fee charged by a bank from merchants for processing payments through credit cards or debit cards.  

Changes in the rules for withdrawing cash from ATMs

RBI has said that customers can do five free transactions from their bank's ATMs. These include financial and non-financial transactions. Not only this, customers can also withdraw money from other bank's ATMs without any charges. Under this, three transactions from other bank ATMs in metro cities and five in non-metro are included. 

These charges will change from January 1, 2022

Customers will have to pay a fee of Rs 21 with effect from January 1, 2022, for transactions exceeding the free transactions prescribed by the RBI. Presently this fee is Rs.20. 

In a statement issued by RBI last month, it was said, "In order to compensate for the higher interchange fee and keeping in view the increase in common cost, they are allowed to increase the customer charge to Rs 21 per transaction. These changes will be effective from January 1, 2022.

Important things about RBI

Reserve Bank of India (RBI) is the regulator of the banking system in the country. The central bank reviews the economy of the country, the condition of the banks and the functioning of the banking system. Along with this, monetary rates are also reviewed by RBI every two months. Shaktikanta Das is the current Governor of Reserve Bank of India


India's appeal against Vodafone arbitration decision to be heard in Singapore High Court in September

India's appeal against Vodafone arbitration decision to be heard in Singapore High Court in September

New Delhi. The Indian government's appeal challenging the decision of the International Arbitration Tribunal in the Vodafone case has been transferred to the High Court of Singapore (Senior Court). Giving this information, the sources said that the hearing on the appeal of the Government of India will be held in September. The International Arbitration Tribunal rejected the Government of India's retrospective tax demand of Rs 22,100 crore on Vodafone Group, against which the Government of India has appealed.

The International Arbitration Tribunal had on September 25 last year rejected the tax department's demand of Rs 22,100 crore tax and fine on the UK-based telecom company. The department had sought this tax in the case of the acquisition of an Indian operator by a British company in 2007. The government had appealed against the decision in December last year on the grounds of jurisdiction. Two sources with knowledge of the matter said that the Indian government's appeal has now been transferred to the high court and will be heard in September. The appeal was filed in a Singapore court because the Southeast Asian country is a bench of tribunal. The government has similarly challenged the decision of the three-member tribunal of the Permanent Court of Arbitration in The Hague.

In this decision, the Indian government has been asked to refund $1.2 billion along with interest and cost to UK's Cairn Energy Plc. Using a 2012 law, the government had asked Vodafone and Cairn to pay tax on alleged capital gains made several years ago. This law allows the tax department to open old cases. Both Vodafone and Cairn had filed an arbitration case under the Bilateral Investment Protection Treaty. India lost both the arbitration cases.