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Now you will have to pay more charge on withdrawing money from ATM from May 1. The Reserve Bank of India i.e. RBI has announced to increase the interchange fee by issuing a notification on Tuesday (March 25).
This means that customers who are dependent on ATM for financial transactions will have to pay additional charge on crossing their free transaction limit.
Now ₹ 19 charge will have to be paid for withdrawing cash from ATM
According to the official notification, customers will have to pay additional Rs 2 for every financial transaction from ATM after the free limit is completed from May 1. At the same time, fees have been increased by 1 rupee for non-financial transaction-like balance inquiry.
Due to this fee hike, now to extract cash from ATM, every transaction will have to pay a charge of 19 rupees, which was earlier 17 rupees. At the same time, every transaction will be charged Rs 7 to check the account balance.
What is ATM interchange fee?
The ATM interchange fee is a charge that one bank offers to provide ATM services to another bank. This fee is usually a fixed amount taken on every transaction, which is often added to customers as part of their banking costs.
RBI took this decision after ATM operators request
RBI decided to revise these charges after a request by white-labeled ATM operators. ATM operators had argued that the growing operational expenses were affecting their business.
The increase in ATM Charges will be applicable across the country. This can affect the customers of small banks. These banks depend on large financial institutions for ATM Infrastructure and related services. This is the reason that the effect of rising costs is more on such banks.
ATM service was affected due to digital payments
Digital payments in India have affected ATM service. The facility of online wallet and UPI transaction has significantly reduced the need for cash withdrawal.
According to government data, India had digital payments worth Rs 952 lakh crore in FY14 in FY14. By FY23, the figure had increased by Rs 3,658 lakh crore. This figure reflects the shift towards cashless transactions.
1,611 crore UPI transactions took place in February
In February 2025, 1611 crore transactions took place through Unified Payment Interface (UPI). During this period, a total amount of Rs 21.96 lakh crore was transferred during this period. The number of transactions has increased by 33% on an annual basis.
