The Reserve Bank of India announced on Friday that starting May 1, 2025, customers will be charged a fee of Rs 23 per transaction for ATM banking services. Earlier the amount was set at Rs 21 per transaction.
Customers will continue to be entitled to five free transactions (both financial and non-financial) each month from their own bank’s ATMs, informed the central bank. They can also make free transactions at other banks’ ATMs—three in metro cities and five in non-metro areas.
ET reported on Wednesday that the RBI and the National Payments Corporation of India (NPCI) had approved a Rs 2 increase in the ATM interchange fee for cash withdrawals. NPCI communicated this change to member banks on March 13, with the new fees set to take effect from May 1, 2025. On March 6, 2024, the National Financial Switch Steering Committee approved a rise in the ATM interchange fee for domestic financial transactions to Rs 19 and non-financial transactions to Rs 7. Following this, NPCI sought the RBI’s approval to implement the changes. The revised fee will be subject to Goods and Services Tax (GST), which will be added separately.
In a letter dated March 11, the RBI informed NPCI that the ATM interchange fee could be determined by the ATM network itself. NPCI has notified the RBI of the date for implementing the revised fee, as confirmed in the letter circulated to member banks, which ET has reviewed.
Earlier, ET reported on June 13, 2024, that the ATM operators’ association had proposed raising the interchange fee to Rs 23 to make the business more profitable.
