If you often withdraw money from ATM, then this news is important for you. ATM transactions will become expensive from May 1, 2025. The Reserve Bank of India (RBI) has increased the charges levied on ATM usage. Now after exceeding the limit of free transactions, you will have to pay more charges every time you withdraw money or check balance.
How much will the charge increase?
Now, for withdrawing cash from ATM, you will have to pay Rs 19, which was Rs 17 earlier.
Checking balance will cost Rs 7, earlier it was Rs 6.
These charges will be applicable after the free transaction limit is exhausted.
What is the limit of free transactions?
There will be facility of 5 free transactions every month in metro cities.
In non-metro cities this limit will be 3 transactions.
After this, you will have to pay a charge every time you use the ATM.
What other changes will happen related to banking?
1. Saving account rules changed
Big banks like SBI, PNB, and Canara Bank are changing the minimum balance limit.
It will be necessary to maintain separate balances according to city, town and village.
A penalty may be levied if the balance is less than the prescribed limit.
2. Credit card benefits will reduce
SBI and IDFC First Bank are reducing the benefits of their Vistara credit cards.
Now ticket vouchers, renewal benefits and milestone rewards may stop being available.
Axis Bank has also made changes from April 18.
3. What is interchange fee?
When you withdraw money from another bank’s ATM, your bank pays a fixed interchange fee to that bank.
RBI has increased this fee.
This will increase the expenses of banks, and they may pass on this burden to the customers.
4. Impact on small banks
Small banks that use ATMs of big banks can charge higher fees from their customers. This will put an additional burden on customers.
What should customers do?
Withdrawing money from ATM frequently will now cost more. In such a situation, try to use UPI, net banking and digital payment more. This will save you charges and transactions will also become easier.
