ATM Withdrawals to Get Costlier from May 1 as RBI Approves Fee Hike
Starting May 1, 2025, withdrawing cash from ATMs in India will become more expensive as the Reserve Bank of India (RBI) has approved an increase in interchange fees. The interchange fee, which is charged when a customer uses an ATM of a bank other than their own, will rise, leading to higher costs for customers exceeding their free transaction limits. The RBI’s decision comes in response to requests from white-label ATM operators, who cited rising operational expenses. The fee hike is expected to impact customers, especially those from smaller banks, as they rely on larger financial institutions for ATM infrastructure.
Summary/Static | Details |
Why in the news? | ATM Withdrawals to Get Costlier from May 1 as RBI Approves Fee Hike |
Change | ATM withdrawal fees increased |
Reason | Rising operational costs of ATM service providers |
New Fee for Cash Withdrawal | ₹19 per transaction (up from ₹17) |
New Fee for Balance Inquiry | ₹7 per transaction (up from ₹6) |
Impact on Customers | Higher costs for those exceeding free transaction limits |
Growth of Digital Payments | Digital transactions surged from ₹952 lakh crore (FY14) to ₹3,658 lakh crore (FY23) |
Expected Trend | Increased adoption of digital transactions |
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