ATM cash withdrawal Charges 2025: After the implementation of the new rules, withdrawing money from ATM will become more expensive. So if you want to withdraw cash, withdraw within the free transaction limit and try to avoid extra charges.
If you withdraw money from ATM, then this news is important for you. ATM transactions are going to become expensive from May 1. The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, due to which you will now have to pay more money on cash withdrawal and other transactions. This change will especially affect those people who do more cash transactions instead of digital payments.
What is ATM interchange fee?
ATM interchange fee is the charge that a bank levies on its customer for withdrawing money or using other services from another bank’s ATM. This fee is usually borne by the banks, but often its burden is also put on the customer. Now after the new rates are implemented, banks can charge this extra charge from their customers.
Why did RBI take this decision?
RBI has made this change after the demand of white-label ATM operators and other banks. They said that they were incurring losses due to increased operational costs. This decision has been taken due to the increasing cost of maintaining ATMs, cash loading and security measures.
Which customers will be most affected?
The increase in ATM transaction charges will affect the customers who depend more on cash withdrawal. Especially the customers of small banks will be affected by this, because these banks depend on big banks for their ATM network. When these customers withdraw money from ATMs of other banks, they will have to pay higher charges.
Apart from this, people who prefer cash transactions instead of digital payments will also be shocked by this change. Users who frequently withdraw money from ATM for their daily needs will now have to pay extra charges.
This decision will have the greatest impact on those customers whose transaction volume is high. Every bank provides its customers with a few free transactions in a month, but after this limit is exhausted, a higher charge will have to be paid for every additional transaction. In such a situation, customers who withdraw money more than the free transaction limit will be affected the most.
What are the new ATM charges?
From May 1, withdrawing money from ATM i.e. cash withdrawal will become expensive. Now customers will have to pay extra charge on every transaction, which will directly affect the pockets of those doing cash transactions.
If you make a financial transaction i.e. withdraw cash, then you will have to pay 2 rupees more charge per transaction. On the other hand, non-financial transactions like checking balance, taking out mini statement or changing ATM PIN (PIN Change) will now become costlier by 1 rupee.
However, these new charges will be applicable only when you exceed the free transaction limit of your bank. That is, if you have already completed the free transaction limit, then after that you will have to pay this increased charge on every extra transaction. Therefore, it will be important to keep the transaction limit in mind while using the ATM.
How to avoid extra charges when withdrawing money from ATM?
Use digital payments more, i.e. make payments through UPI, net banking and mobile wallet. Withdraw more money at one go, avoid going to the ATM again and again so that you do not incur extra charges. Use your bank’s ATM only, withdrawing money from another bank’s ATM attracts higher charges. Be aware of your bank’s free transaction limit, because every bank has a different free limit.
