RBI: If you often withdraw money from ATM, then this news is important for you. If you use ATM frequently then be alert. From 1 May 2025, you will have to pay more charges for transacting more than the free limit. Reserve Bank of India (RBI) has decided to increase ATM interchange fee. This will make cash withdrawal from ATM expensive from 1 May 2025. This decision has been taken in view of the increasing operation cost of ATM.
What is ATM interchange fee?
ATM interchange fee is a charge that a bank pays to another bank for using its ATM. When a customer withdraws money from an ATM of another bank instead of his own, his bank pays this charge to the other bank. Usually banks charge this fee from customers, especially when they exceed their free transaction limit.
How much did the charge increase?
According to the new rules of RBI, from May 1, 2025, withdrawing cash from ATM and other non-financial transactions will become expensive.
Cash withdrawal fee – increased from Rs 17 to Rs 19 per transaction
Non-financial transactions (such as balance check, mini statement) – increased from Rs 6 to Rs 7 per transaction
What is the limit for free ATM transactions?
As per RBI rules, customers can withdraw money from ATM up to a fixed limit every month without any additional charge.
Only 3 free transactions (including financial and non-financial) from other bank ATMs in metro cities (Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru)
5 free transactions at other locations
If you use the ATM more than this limit, you will have to pay increased fees.
Will charges be levied on failed transactions also?
Many times the transaction fails due to technical fault, network failure or lack of cash in the ATM. Customers are confused about whether these failed transactions will also be charged? RBI has clarified that no charge will be levied on transactions that fail due to technical reasons.
Promoting digital banking
Digital banking will get a big boost after the increase in ATM charges. Customers can easily transact through facilities like UPI, mobile banking, internet banking and WhatsApp banking and reduce their dependence on ATMs. Digital payments will not only save money but also time.
