As per the rules published by Reserve Bank of India, ATM Withdrawal charges will increase. after exceeding the monthly free transaction limit, customers will have to pay Rs.23 per transaction instead of rs.21 the reserve bank of india rbi has approved this rs.2 hike recently on friday. Customers get five free transactions per month at their bank’s atms. Including both financial and non-financial transaction. after this limit charges apply. the revised fee will affect customers who withdraw cash frequently after exhausting their free limit. banks are expected to implement the new charges uniformly across all the ATM Networks.
This move follows the RBI’s periodic review of banking service fees to adjust for operational costs. customers are advised to plan their atm usage accordingly to avoid extra charges. banks may also encourage digital transactions as an alterative to frequent atm withdrawals.
Higher ATM Charges for Other Bank ATMs from May 1
In the metro cities, customers can make up to three free transactions per month, while in non-metro cities, the get five free transactions. after exceeding this limit, each transaction will cost rs.23 instead of the current of rs.21. currently, banks charge a maximum of rs.21 per transaction once the free limit is exhausted. Frequent ATM users will have to pay more, especially those who withdraw cash multiple times a month or use the other atm services. this change will impact the customers who rely on atms frequently instead of digital transactions. the revised charges aim to cover operational costs and encourage people to use the online banking and other digital payment methods.
As per the details, lastly the update made upon the charges on withdrawing the money from the ATM Machine in june 2021. Now, the charges will be increasing from may 1st, 2025. If you are wondering what interchange fee? so it is an interchange fee or amount that one bank pays to another bank when a customer uses the ATM Machine that does belong to their home bank. this fee covers the cost of maintaining ATMs. Now, from 1st of may the charges will be increased by RS.2. As it was Rs.17 previously now it will be Rs.19. You can use your own bank’s ATM as it will not cost you More money. Keep track of your ATM withdrawals to stay within the free transaction limit.
