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ATM Transaction Fees: The new ATM rules coming into effect from 1 May 2025 will make a direct impact on the common man’s pocket. Withdrawing money from ATMs will no longer be ‘free’, especially when you cross the border or use a non-hom bank.
ATM Transaction Fees: From May 1, 2025, there is going to be a big change in the charge of ATM services. Especially when you use ATM of another bank instead of your bank’s ATM, now you will have to pay more fees than before. Where earlier it used to take Rs 17 on withdrawing money, now you have to pay 19 rupees, while the fee has reached Rs 9 on checking the balance. This change will affect the most on consumers who do cash transactions repeatedly and whose home branch ATM is not near.
Increase in charge: Transaction from ATM no longer cheaper deal
RBI has increased the ATM transaction charge by approving the proposal of National Payments Corporation of India (NPCI). Now on the ATM of another bank, for the withdrawal of cash more than the prescribed limit a month, Rs 19 will have to be paid, which was earlier Rs 17. Not only this, for the balance inquiry, that is, to see the remaining amount, now you have to pay up to 9 rupees, which was earlier 7 rupees. These charge will be applicable after 5 free transactions in metro cities and 3 in non-Metro cities.
Small banks affected the most
The biggest impact of this increased fee will be on the customers who stay away from the reach of their bank’s ATMs or are customers of banks who do not have their own strong ATM network. Now consumers will either have to search for their home bank ATM or every time you will have to pay extra money on transactions. This will not only increase the burden on the customer’s pocket, but will also reduce the importance of free facility from banks.
Digital payment can become a better option
Amidst these changes, experts believe that digital transactions, such as UPI, NetBanking and Mobile Wallets, can prove to be a better option. They are not only sharp and convenient compared to cash transactions, but are also free. After the increasing ATM charge, many customers can now turn to digital mediums, which will reduce cash dependence and move one step towards Digital India.
Apart from ATM charge, RBI has issued another important instruction. Now banks will have to ensure that their 75% ATMs have a ₹ 100 or ₹ 200 notes in a cassette at least one cassette by 30 September 2025 and 90% ATM. Its purpose is to provide relief to customers who need small value notes. This will give the most benefits to villages, towns and small traders, where there is difficulty in running big notes.
