It is really sad that the dispensation which came into power with a promise of ensuring Achhe Din (Good Days), has lead the country to become one amongst those which have a complex system of taxes as even making ATM transactions is costly affair here and the same is about to become even more costlier, come May 1, 2025, as the Reserve Bank of India (RBI) has raised ATM interchange fees. This means customers who rely on ATMs for financial transactions will have to pay additional charges once they exceed their free transaction limit.
Reportedly, the change in the fees will affect the customers who frequently use ATMs for withdrawals as they are now supposed to pay an additional Rs 2 for each financial transaction beyond the free limit from May 1. While the fee for non-financial transactions, such as balance inquiries, will cost Rs 1 more, withdrawing cash from an ATM will now cost Rs 19 per transaction, from the current Rs 17. The services like checking account balances will now cost Rs 7 per transaction.
Though it has been seen as giving a push towards digital transactions, the extra burden on the community relying more on ATMs has exposed government’s lack of care because it seems that in the long run hardly there would remain a government service which will be offered free of cost to the countrymen.
Going by today’s strict tax regime, it looks that country has gone in the hands of some private companies which seldom care about the welfare of the people as every step of these ‘business tycoons’ is based on give and take. If the people will not oppose such a stance of the people sitting at helm, the days are not far when even breathing will be taxed by installing oxygen meters.
The inception of ATMs was initially meant to lower the workload of banks as increasing customer base was making it difficult for banks to cater to all the needs of people visiting their premises. But lately, the government has started making people believe that it was their demand to have a facility like this and therefore paying more taxes is their duty.
There is dire need to study the whole gamut and find out whether the proposed increase in tax on ATM transactions is genuine or another move of taxing people unnecessary? The change is expected to impact customers, especially those from smaller banks. These banks rely on larger financial institutions for ATM infrastructure and related services, making them more vulnerable to rising costs.
