ATM Money Withdrawal: There is no fee for cash withdrawals from ATMs up to a specified limit. However, once this limit is exceeded, a fee will be deducted from your account. As reported by PTI, this fee is set to increase. Effective May 1, 2025, the charge for cash withdrawals will rise by Rs 2, making ATM transactions more costly.
Decision to raise the fee was influenced by the operational costs associated with ATMs
Media sources indicate that this decision to raise the fee was influenced by the operational costs associated with ATMs.
Fee will increase to Rs 23 per transaction
Currently, individuals incur a fee of Rs 21 per transaction for withdrawals that exceed the limit, but starting May 1, this fee will increase to Rs 23 per transaction. This adjustment has been implemented collaboratively by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). Under this new regulation, the fee for ATM cash withdrawals will rise from May 1, 2025. While individuals can withdraw cash from ATMs without charge up to a certain limit, an interchange fee applies once that limit is surpassed.
This fee is typically applied when a customer exceeds a predetermined limit of free transactions
The interchange fee is defined as the amount of money that one financial institution pays to another when customers utilize Automated Teller Machine (ATM) services. This fee is typically applied when a customer exceeds a predetermined limit of free transactions. At present, most banks charge approximately Rs 21 for each transaction conducted at an ATM beyond this limit. According to the guidelines set forth by the Reserve Bank of India (RBI), customers are allowed to withdraw cash without incurring any fees, but only up to a specific threshold. In prominent metropolitan areas such as Mumbai, Kolkata, Chennai, Hyderabad, and Bangalore, individuals are permitted to perform up to three transactions each month without facing any charges.