ATM withdrawals set to cost you more from May 1 – here’s why

This payment, charged between card-issuing and ATM-operating banks, finally impacts buyer banking bills. (AI picture)

ATM withdrawals will cost more quickly! The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have sanctioned a rise of ₹2 in ATM interchange charges for money withdrawals to guarantee enterprise sustainability. These revised fees will probably be efficient from May 1.
This payment, charged between card-issuing and ATM-operating banks, finally impacts buyer banking bills. Presently, account holders in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi could make 5 free transactions month-to-month at their financial institution’s ATMs and three at different banks’ machines. Sources point out the heightened interchange payment will affect clients, although banks at the moment cowl free transaction prices. According to RBI statistics, India operated 2,16,706 ATMs as of January 2025.
The National Financial Switch Steering Committee endorsed a rise in ATM interchange charges on March 6, 2024, setting home monetary transactions at ₹19 and non-monetary transactions at ₹7. Subsequently, NPCI requested RBI’s endorsement for implementing these changes.
Also Read | Mahila Samman Savings Certificate: Last few days left to get 7.5% curiosity for 2 years – prime information about put up workplace financial savings scheme
NPCI communicated the up to date payment construction to its member banks on March 13, which has solely not too long ago turn out to be public information. These charges will probably be topic to extra Goods and Services Tax (GST). Through correspondence dated March 11, RBI knowledgeable NPCI that the ATM community might decide the interchange payment independently.
As per the round distributed to member banks, which ET has examined, NPCI has knowledgeable RBI in regards to the implementation date of the revised charges.
“This fee hike provides additional support to banks and white-label ATM (WLA) operators, enabling them to maintain and enhance the ATM infrastructure,” mentioned Anush Raghavan, president—Cash Management Solution, CMS Info Systems. “We anticipate that the current fee adjustment will further incentivise banks to invest in and expand their ATM networks, thereby improving accessibility and convenience for customers nationwide.”
A report within the monetary day by day final 12 months indicated that ATM operators’ affiliation steered elevating the interchange payment to ₹23 for improved enterprise viability. The interchange payment noticed a rise from ₹15 to ₹17 in 2021, while the utmost buyer transaction payment rose from ₹20 to ₹21.
Also Read | Are your financial institution deposits insured if financial institution fails? Up to Rs 5 lakh deposit insurance coverage scheme defined
ATM utilization has proven a constant decline. RBI figures show a discount in money withdrawals from over 57 crore transactions in January 2023 to 52.72 crore in January 2024, additional reducing to 48.83 crore by January 2025. Nevertheless, money stays essential in India’s financial panorama. The 2021 interchange payment improve contributed to ATM community progress. During FY24, month-to-month ATM withdrawals averaged ₹1.43 crore, exhibiting a 5.51% annual improve. NPCI’s correspondence specified a ₹7 interchange payment for stability enquiries in Nepal and Bhutan, excluding GST, while sustaining current money withdrawal charges. These revised charges exclude Micro-ATMs, interoperable money deposits, and worldwide ATM transactions.