Mumbai: The Reserve Bank of India (RBI) has approved a revision in ATM interchange fees, set to take effect from May 1, 2025. The revised charges will impact both financial and non-financial transactions for customers using ATMs of banks other than their own.
Key Changes in ATM Fees
- Financial transactions: The interchange fee will increase by ₹2, rising from ₹17 to ₹19 per transaction.
- Non-financial transactions: Fees for services like balance inquiries will go up by ₹1, increasing from ₹6 to ₹7.
Understanding Interchange Fees
An interchange fee is the charge one bank pays another when a customer uses an ATM that does not belong to their home bank. This fee covers the operational costs of maintaining ATMs and offering services to customers of different banks. The last revision in ATM fees was implemented in June 2021.
Impact on Customers
Customers are allowed a limited number of free transactions per month at ATMs of other banks:
- Metro cities: 5 free transactions per month
- Non-metro areas: 3 free transactions per month
If these limits are exceeded, customers may face higher additional charges due to the increased interchange fees.
Considerations for ATM Users
With higher fees coming into effect, frequent ATM users may consider ways to minimize additional costs:
- Use home bank ATMs to take advantage of free transaction limits.
- Monitor transaction limits to avoid exceeding the free usage quota.
- Opt for digital payments to reduce reliance on cash withdrawals.
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