ATM Charges To Rise From May 1, 2025, Customers To Pay More For Non-Home Bank Transactions

Mumbai: Starting May 1, 2025, cash withdrawals and balance inquiries at ATMs will become more expensive for users across India. The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, a move set to affect customers using ATMs outside their home bank network. The fee for a balance inquiry will rise from Rs 6 to Rs 7 per transaction. These charges will apply only after the free monthly transaction limits are crossed—five transactions in metro cities and three in non-metro areas.

Why This Hike Was Approved

The fee revision was proposed by the National Payments Corporation of India (NPCI) and supported by white-label ATM operators who cited rising operational expenses as the reason for the hike. These operators, who run ATMs independently of banks, argued that increasing electricity, security, and maintenance costs had made current fees unsustainable.

Impact on Bank Customers

Frequent ATM users, especially those dependent on ATMs outside their home bank’s network, will feel the pinch. While large private and public sector banks operate extensive ATM networks, smaller banks that rely more heavily on shared infrastructure may face increased costs, potentially passing those expenses on to customers through higher account maintenance fees.

Customers can avoid extra charges by using their own bank’s ATMs or turning to digital payment methods, which remain free and convenient.

More Banking Changes Ahead

This is not the only change customers should prepare for. From April 2025, several credit card benefits and reward programs are being revised:

Axis Bank will alter the benefits on its Vistara Credit Card after the airline’s merger with Air India, effective for renewals from April 18, 2025.

SBI Card has also announced changes to its rewards structure, reducing points on certain categories between March 31 and April 1, 2025.