Starting May 1, 2025, the Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, which will result in higher charges for customers exceeding their free monthly transaction limits.
Revised Charges:
- Financial Transactions (Cash Withdrawals): The fee will increase by ₹2, from ₹17 to ₹19 per transaction beyond the free limit.
- Non-Financial Transactions (Balance Inquiries, Mini Statements, etc.): The fee will rise by ₹1, from ₹6 to ₹7 per transaction beyond the free limit.
Free Transaction Limits:
- Metro Locations (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, Hyderabad): Customers are entitled to three free transactions per month at ATMs of other banks.
- Non-Metro Locations: Customers can avail up to five free transactions per month at ATMs of other banks.
Transactions that fail due to technical reasons, such as hardware or software issues, non-availability of currency notes, or other errors attributable to the bank or service provider, will not be counted as valid ATM transactions. Consequently, no charges shall be levied for such failed transactions.
These adjustments aim to address the rising operational costs faced by ATM operators and encourage the adoption of digital banking methods. Customers are advised to monitor their ATM usage to avoid additional charges and consider utilizing digital payment options for greater convenience and cost-effectiveness.