ATM Cash Withdrawal Charges 2025: ATM interchange fee is the amount that a bank pays when its customer uses the ATM of another bank.
ATM Cash Withdrawal Charges 2025: If you withdraw money from ATM then this news is important for you. The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees. Due to this, from May 1, customers will have to pay additional charges on cash withdrawal and other transactions from ATM. This change will especially affect those who depend more on cash transactions rather than digital payments.
What is ATM interchange fee?
ATM interchange fee is the amount that a bank pays when its customer uses another bank’s ATM. This charge is also often applied to customers, especially when they transact beyond the free transaction limit.
Change in fee as per new rule
According to the notification issued by RBI, the following changes will be made on ATM transactions from May 1, 2025. After the free limit ends, every cash withdrawal transaction will now be charged Rs 19, which was Rs 17 earlier. For balance inquiry or other non-cash transactions, customers will have to pay a fee of Rs 7, which was Rs 6 earlier.
Reason for fee hike
This change has been made after the demand of white-label ATM operators. These operators had appealed to RBI to increase the interchange fee due to increasing work cost so that their business can remain stable.
What will be the impact for customers?
There will be no additional charges on transactions within the free transaction limit. After the prescribed free limit, Rs 19 will be charged on each cash withdrawal and Rs 7 for other services.
So if you do a lot of cash transactions, then this change can affect your pocket. Customers are advised to understand the free transaction limit of their bank and pay more attention to digital payment options.
