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RBI Confirms ATM Fee Hike Effective May 1, 2025

Cash withdrawals and balance inquiries will cost more after free transaction limits, with smaller banks and cash-dependent customers facing the greatest impact.

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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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Overview

  • ATM cash withdrawal fees will increase from ₹17 to ₹19 per transaction, and balance inquiry fees will rise from ₹6 to ₹7, starting May 1, 2025.
  • The fee hike applies after customers exceed their free monthly limits: five transactions in metro cities and three in non-metro areas at other banks' ATMs.
  • The Reserve Bank of India approved the increase following lobbying from white-label ATM operators and the National Payments Corporation of India, citing rising operational costs.
  • Smaller banks and their customers are expected to be disproportionately affected due to their reliance on larger banks' ATM networks.
  • The fee hike underscores the ongoing decline in ATM usage as digital payment methods like UPI become increasingly dominant in India.