ATM Withdrawal Charges: The Central Bank said that the new charges will be effective from May 1, 2025. Earlier, the charges were Rs 21 per transaction.
The Reserve Bank of India (RBI) has announced that the ATM withdrawal charged after free monthly transactions will be Rs 23 per transaction for ATM baking services. The Central Bank said that the new charges will be effective from May 1, 2025.
Customers will continue to be entitled to five free transactions per month from their own bank’s ATMs. These transactions include both financial and non-financial transactions.
They can also make free transactions at other banks’ ATMs. However, in this case, the number of free transactions is three in metro cities and five in non-metro areas.
Earlier, the RBI approved an increase in ATM interchange fees. According to reports, the Central Bank has agreed on raising the fee by Rs 2 for financial transactions and Re 1 for non-financial transactions. The new charges will take effect from May 1.
What is an ATM interchange fee?
There is nothing free in the financial services industry. Every time a customer of a particular bank uses an ATM of another bank for any transaction – be it financial or non-financial – the former bank has to pay a fee to the other bank. This fee, usually a fixed amount per transaction, is called an ATM interchange fee.
What will the new fee be?
The new fee after this hike will be as follows:
For financial transactions i.e. cash withdrawal: It will be increased from Rs 17 to Rs 19 per transaction.
For non-financial transactions i.e. balance inquiries and other such things: It will be raised to Rs 7 per transaction from the existing Rs 6.
Will this move impact customers?
The bank often passes on this fee to customers as part of their banking costs. While there is nothing clear yet on whether this fee hike will be passed to customers or not.
The hike is part of an RBI-approved revision based on a proposal by the National Payments Corporation of India (NPCI).
