The Reserve Bank of India (RBI) has announced a revision in ATM interchange fees, which will come into effect from May 1, 2025.
The move is expected to impact both banks and customers, especially for transactions conducted at ATMs belonging to banks other than the customer’s own.
According to the new directive, financial transaction charges at ATMs will increase by ₹2, while non-financial transaction charges will rise by ₹1.
Interchange fees are charges paid by the card-issuing bank to the ATM-operating bank when a customer uses an ATM outside their home bank’s network. The revision is aimed at helping banks recover the increasing operational costs associated with ATM maintenance and cash handling.
The RBI stated that the increase comes after reviewing the cost structures and consultation with stakeholders. This is the first revision of ATM interchange fees since 2021.
While customers will still enjoy the existing free ATM withdrawal limits set by their respective banks, any transaction exceeding those limits will be subject to the new charges.
