ATM
For withdrawal of money from ATM, you have to pay more than May 1. The Reserve Bank of India (RBI) has approved the amendment of ATM interchange fees, which will now be applicable from May 1, 2025. This decision will affect both financial and non-financial transactions for bank customers. The RBI has approved an increase of Rs 2 in the fee for financial transactions, which has increased from Rs 17 to Rs 19. Other non-financial transactions like balance inquiry will also increase by Rs 1, which will increase Rs 7 instead of 6.
Permission to withdraw money for free 5 times
Customers are allowed to have a limited number of free transactions every month at ATMs of different banks. In metro regions, customers are given 5 transactions while in non-Metro areas this facility is available 3 times. If the number of free transactions is exceeded, the additional fee that customers have to pay can be increased already due to high interchange fee.
What is an interchange fee?
The interchange fee is the fee that one bank pays to another bank when the customer does not use ATMs connected to their home bank. This includes the cost associated with a bank having ATMs to provide service to specific card holders for different banks. These ATM fee changes were last updated in June 2021.
Avoid giving more charge
To avail the free transaction limit, do transactions from your bank’s ATM. Keep an eye on your ATM withdrawal to stay within the free transaction limit. Use digital banking services and online payment methods to reduce dependence on cash withdrawal.
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