If you are a bank account holder then this article is for you. Now RBI has given a big approval about ATM. Starting May 1, you’ll notice an increase in fees for withdrawing cash from ATMs. The Reserve Bank of India (RBI) has approved a hike in the ATM interchange fee, which will take effect on that date in 2025.
This change will impact both financial and non-financial transactions for bank users. Specifically, the fee for financial transactions will rise by Rs 2, going from Rs 17 to Rs 19. Additionally, non-financial transactions, like checking your balance, will see a Rs 1 increase, bringing the cost to Rs 7.
You can make 5 free withdrawals
Customers can enjoy a limited number of free ATM transactions each month at various banks. In metro areas, you’re allowed 5 free transactions, while in non-metro areas, you get 3. If you go over this limit, the extra fees you’ll incur could be higher due to the increased interchange fee.
What’s the interchange fee?
Interchange fees are the charges one bank pays to another when a customer uses an ATM that isn’t affiliated with their home bank. This covers the costs for the bank that owns the ATM to provide services to cardholders from different banks. The last update to these ATM fees was in June 2021.
Tips to avoid higher charges
1. Use your own bank’s ATM to take advantage of the free transaction limit.
2. Monitor your ATM withdrawals to ensure you stay within the free limit.
3. Opt for digital banking and online payment options to lessen your need for cash withdrawals.