ATM withdrawals to cost more from May 1 after RBI hikes interchange fees | Full details here

These charges will be applicable once users exhaust their free monthly limits; Five transactions in metro cities and three in non-metros at other banks' ATMs.

Updated on: Mar 28, 2025, 16:24:50 IST

By HT News Desk

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The Reserve Bank of India (RBI) has approved a hike in ATM interchange fees, raising the cost of cash withdrawals from May 1, 2025 onwards.

What are ATM interchange fees?

ATM interchange fees refer to the amount one bank pays to another when a customer uses a different bank's ATM to withdraw money.

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What will be the new ATM interchange charges?

The new charges which were pushed by white-label ATM operators, will be as follows, according to a Business Today report.

Cash withdrawal fee: ₹19 per transaction from ₹17 earlier.

Balance inquiry fee: ₹7 per transaction from ₹6 earlier.

These charges will be applicable once users exhaust their free monthly limits, which are five transactions in metro cities and three in non-metro places at other banks' ATMs.

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This fee hike also came about based on a proposal by the National Payments Corporation of India (NPCI), the company behind the digital payments framework Unified Payments Interface (UPI).

On top of this, white-label ATM operators had also been lobbying for an increase, arguing that the old fees were unsustainable due to the rising operational costs.

The charges are also likely to impacted customers of smaller banks more since many of them rely on other banks' ATM networks due to their limited infrastructure.

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The only way to avoid these additional fees is to stick to the home bank’s ATMs or increase the usage of digital payment methods rather than cash.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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