ATM Withdrawals to Get Costlier from May 1: Check New Charges and Banking Rule Updates

From May 1st cash withdrawals from ATMs will be costlier as the Reserve Bank of India (RBI) has given a head nod for hiking interchange fees. Cash withdrawal from ATMs will now be INR 19 per transaction up from INR 17 while balance checking will be INR 7 compared to INR 6 previously. 

The new charges, according to suggestions made by the National Payments Corporation of India (NPCI) will be applicable after clients go over their free number of transactions which includes five free transactions at metro ATMs and three in non metro locations.

The increase in fee comes amid calls from white label ATM operators who attributed the increase in operational costs. The smaller banks which rely on larger banks for ATM services will be the worst hit, as their customers will have to pay more to access other bank’s ATMs.

Starting May 1, 2025, withdrawing money from ATMs will become costlier due to the increase in ATM interchange fees approved by the Reserve Bank of India 🇮🇳

Customers exceeding their free transaction limits will now pay ₹19 for financial transactions and ₹7 for non-financial… pic.twitter.com/JoJ7HkeRHV

— Ajay Kashyap (@EverythingAjay) March 25, 2025

Also, banks such as SBI, PNB and Canara Bank are revising their minimum balance levels according to urban, semi-urban and rural categorizations. A failure to have the minimum balance will attract penalties.

Read Also: Big Changes for SBI Credit Cards Holders from April 1 – Know Details

Credit card users too will face a change. SBI, IDFC First Bank and Axis Bank are reshaping co-branded Vistara credit card privileges by abolishing the privileges like voucher and milestones reward.

Under these changes, heavy ATM visitors can opt for online transactions or opt for the use of house bank ATMs to avert additional cost.