From ATM charges to new NACH rules: Here are key changes effective from August 1

From ATM charges to new NACH rules: Here are key changes effective from August 1

New Delhi: There are a few rule changes that will come into effect from August 1 that will impact the average person’s personal finances. Here is a look at them.

NACH system to be available on all days

The Reserve Bank of India (RBI) has announced that the National Automated Clearing House (NACH) system will be available on all days, including Sundays and bank holidays, effective from August 1, 2021.

NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc., as also collection of payments pertaining to electricity, gas, telephone, water, periodic installments towards loans, investments in mutual funds, insurance premium, etc.

NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to large number of beneficiaries. This has helped transfer of government subsidies during the present COVID-19 in a timely and transparent manner. In order to further enhance customer convenience, and to leverage the 24×7 availability of RTGS, NACH which is currently available on bank working days, is proposed to be made available on all days of the week effective from August 1, 2021.

At present, auto-debit instructions given by the bank account holder does not get processed on days the bank is closed like Sundays, bank holidays and even gazetted holidays. Further, since most companies use NACH for salary credits these also do not happen on bank holidays.

From August 1, your salary credit into your bank account, auto-debits related to mutual fund SIPs, home/car/personal loans EMI payments, bill payments such as telephone bills, gas payments, electricity bills etc. will take place even on bank holidays.

India Post Payments Bank Charges from August 2021

India Post Payments Bank (IPPB) has announced changes in some of its banking charges applicable from August 1, 2021. IPPB has updated the charges related to doorstep banking and other services. Doorstep delivery service, which was being provided free of cost till now, will be chargeable.Customers will have to pay Rs 20 plus GST charge from August 1 to use doorstep banking services offered by the bank. Cash transactions (withdrawing or depositing cash) in doorstep banking service will attract 20 per transaction along with GST.

New ATM Cash withdrawal, transaction charges from August 2021

The Reserve Bank of India had recently announced a couple of changes in the ATM rules. While these rules are in line with the long pressing demands by the payment services, banks and white label ATM operators for customers it also means a little more burden on their pocket. Effective August 1, 2021, banks are allowed to increase 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, the circular said. ATMs are deployed by banks for serving their own customers and also provide services to other banks’ customers as acquirers where they earn interchange income.

Revision in ICICI Bank transaction charges

According to ICICI Bank’s website, the service charges of various transactions of regular savings account will be revised from August 1, 2021. Here is a look at some of the revisions according to the website:

Cash transaction charges

Value limit (sum total of deposits and withdrawals) the value limit is inclusive of both Home and Non home branch transactions.
a) Home Branch (Branch where account is opened or ported)
Rs 2 lakh. (w.e.f Aug 01, 2021 – Rs 1 lakh) Free per month per account.
Above Rs 2 lakh (w.e.f Aug 01, 2021 – Rs 1 lakh) – Rs 5 per Rs 1,000, subject to a minimum of Rs 150
b) Non-Home branch
No charges for cash transactions value up to Rs 25,000 per day.
Above Rs 25,000 – Rs 5 per Rs 1,000 subject to a minimum of Rs 150
Cheque books
Nil for 20 (w.e.f Aug 01, 2021 – Nil for 25) payable-at-par cheque leaves in a year; Rs. 20 for every additional cheque book of 10 leaves.