Cash withdrawals and balance inquiries at ATMs may become more expensive from May 1, 2025.
The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, making transactions at non-home bank ATMs costlier for customers.
Starting May 1, customers will see a bump in ATM transaction charges across India.
Cash withdrawal fee: Rs 17 to Rs 19 per transaction
Balance inquiry fee: Rs 6 to Rs 7 per transaction
While the financial transactions get expensive by Rs 2, the non-financial transactions, such as balance inquiries, will cost an extra rupee from May 1.
The hiked fees are a component of an RBI-authorised revision based on a National Payments Corporation of India (NPCI) recommendation.
White-label ATM operators had been pushing for a raise, claiming the previous fees were unaffordable in light of growing operating expenses.
These charges apply once users exhaust their free monthly limits — five transactions in metro cities and three in non-metro areas at other banks’ ATMs.
Smaller banks are likely to feel the pressure more, as they rely heavily on other banks’ ATM networks due to their limited infrastructure.
The increased interchange fee — the amount one bank pays another when a customer uses a different bank’s ATM — will now be passed more directly to customers.
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Regular ATM users might choose to switch to digital payment methods or stick to their home bank’s ATMs once the higher fees take effect.
The ATM fee was last revised in June 2021.
