Alert: ATM Withdrawal Fees Set to Increase in India From This Date
Starting May 1, withdrawing cash from ATMs in India will become more expensive. The Reserve Bank of India has approved a hike in ATM interchange fees, impacting customers, especially those from smaller banks. Find out the new charges for financial and non-financial transactions.
Alert: ATM Withdrawal Fees Set to Increase in India From This Date
Starting May 1, withdrawing cash from ATMs in India will cost more as the Reserve Bank of India (RBI) has approved an increase in ATM interchange fees. From April 1, customers will face additional charges once they exceed their free transaction limit.
The ATM interchange fee is a charge one bank pays to another for ATM services. The RBI increased these fees after requests from white-label ATM operators, who cited rising operational costs.
From May 1, customers will pay an extra Rs 2 for each financial transaction beyond the free limit. For non-financial transactions like balance inquiries, the fee will rise by Rs 1. As a result, withdrawing cash will now cost Rs 19 per transaction, up from Rs 17, and checking account balances will cost Rs 7 per transaction.
While ATMs were once a key service, their use has decreased with the rise of digital payments like online wallets and UPI. Government data reveals that digital payments in India grew from Rs 952 lakh crore in FY14 to Rs 3,658 lakh crore in FY23. This fee hike may push more customers toward digital alternatives as cash transactions become more costly.
