The month of August will see several changes that will affect the day-to-day banking operations, and also have an impact on other sectors. Those who transact with banks will have to be aware of the changes coming in effect from August 1.
Salary, EMI payment related: The Reserve Bank of India had announced in June that the National Automated Clearing House (NACH) will be available on all days of the week, 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 facilitates collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premium.
ATM cash withdrawal to be expensive: According to another RBI order in the month of June, the interchange fees structure for transactions at Automated Teller Machines (ATMs) was increased from ₹15 to ₹17. The hike will be effective from August 1, as announced by the RBI. The interchange fees has been hiked after nine years, keeping in view the deployment and expenses towards ATM maintenance which has to be incurred by the banks. For non-financial transactions, the fees has been hikes from ₹5 to ₹6. 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.
Revision in banking charges by IPPB: The India Post Payments Bank (IPPB) announced earlier this month that customer who use its doorstep services will now have to pay additional charges. The IPPB has said that it will start charging ₹20 (plus GST) for each request for doorstep service. This will be applicable from August 1. Currently, there is no charge on doorstep banking offered by IPPB. However, there won’t be any limit on the number of transactions when an IPPB personnel visits a customer’s home for doorstep service, according to India Post. But, it has clarified that the ‘no charge’ clause will be applicable only on serving multiple requests of a single customer. If there is more people who want to use IPPB’s doorstep service, it will be considered as separate DSB delivery and will be chargeable.
ICICI Bank to revise charges: India’s leading private bank ICICI has said that it will revise limits of cash transactions, ATM interchange and cheque book charges for its domestic savings account holders. These changes will be effective from August 1, according to ICICI Bank’s website. The revision of charges will be applicable for all the cash transactions – deposit as well as withdrawal. As per the bank’s website, the customers who have regular savings account with the bank, are allowed four free transactions. Those above the free limits would invite a charge of ₹150 per transaction, according to ICICI.