Using another bank's ATM for cash withdrawal? Get ready to pay more from May 1 | Zee Business
From May 1, 2025, withdrawing cash from ATMs of banks other than your own will become more expensive. The Reserve Bank of India (RBI) reportedly has approved a hike in ATM interchange fees, meaning banks will charge more once customers use up their free transactions.
If you withdraw cash from an ATM that doesn’t belong to your bank after using up your free transactions, you’ll have to pay higher charges:
Customers of smaller banks may feel the pinch more, as they often rely on ATMs of larger banks due to limited branch networks. The change comes as ATMs struggle to remain relevant in India, with digital payments—UPI, mobile wallets, and internet banking—taking over.
Private ATM providers, known as white-label ATM operators, have been requesting a fee hike due to rising operational costs. According to them, it’s becoming difficult to maintain ATMs with the current charges. To help keep ATM services running, the Reserve Bank of India (RBI) has approved this increase.
You can avoid these extra charges by using digital payment methods like UPI, mobile banking, or internet banking, which are free and becoming more popular every day.
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In metro cities like Delhi, Mumbai, and Chennai, you get three free transactions per month at other bank ATMs, while in non-metro cities, you get five free transactions per month at other bank ATMs. There will be no charges for failed transactions.
With digital payments in India growing from Rs 952 lakh crore in FY14 to Rs 3,658 lakh crore in FY23, people are using less cash. But for those who still prefer cash withdrawals, this fee hike will make ATM transactions a bit more expensive.
