The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have approved a Rs 2 increase in ATM interchange fees for cash withdrawals, effective from May 1, 2025. This change will raise the interchange fee from Rs 17 to Rs 19 for financial transactions, while the fee for non-financial transactions will increase from Rs 6 to Rs 7.

The new interchange fees will take effect on May 1, 2025. Financial transactions (cash withdrawals): Increased to Rs 19. Non-financial transactions (balance inquiries, etc.): Increased to Rs 7.

Customers using ATMs outside their home bank network may see increased costs, especially after exceeding their free transaction limits. In metro cities, customers are allowed five free transactions at their own bank's ATMs and three at other banks' ATMs.

The hike was proposed by NPCI and approved by the RBI to address rising operational costs faced by ATM operators, particularly white-label ATM operators who have been lobbying for higher fees.

The revised interchange fee will not apply to micro-ATMs, interoperable cash deposit transactions, or international ATM withdrawals.