After May 1, you have to pay more fees to withdraw money from ATM. The Reserve Bank of India (RBI) has approved the amendment in the ATM interchange fee, which will now be applicable from 1 May 2025. This decision will affect both financial and non-financial transactions for bank customers. The RBI has approved an increase of Rs 2 in the fee for financial transactions, which has increased from Rs 17 to Rs 19. Balance inquiries like other non-financial transactions will also increase by Rs 1, which will increase the fee of Rs 7 instead of Rs 6.
Permission to withdraw free money 5 times
Customers are allowed a limited number of free transactions every month at ATMs of various banks. In metro regions, customers are provided transactions 5 times, while in non-Metro areas this feature is available 3 times. If the number of free transactions is exceeded, the additional fee paid to customers may increase due to already high interchange fee.
What are interchange fees?
The interchange fee is the fee that one bank pays to another bank when a customer uses an ATM that is not affiliated to its home bank. This includes the costs ranging from maintenance of the bank’s ATMs to serving the specific card holders of various banks. These ATM fee changes were last updated in June 2021.
Avoid paying additional fees in this way
– To achieve free transactions limit, do transactions from your bank’s ATM.
– Keep an eye on your ATM withdrawal to stay within free transactions boundary.
-Use digital banking services and online payment methods to reduce dependence on stubborn withdrawal.
