The Reserve Bank of India (RBI) has raised interchange fees, making ATM transactions more expensive across the country from May 1,2025.
Key points:
👉 Financial transactions beyond the free limit will now cost Rs 19 per transaction, up from Rs 17.
👉 Non-financial services like balance inquiries will cost Rs 7 per transaction, a Rs 1 hike.
This move comes after requests from white-label ATM operators citing rising operational costs. Smaller banks, reliant on larger institutions for ATM infrastructure, are expected to feel the pinch.
📉 The Shift to Digital:
ATMs, once the backbone of banking convenience, face challenges as digital wallets and UPI take center stage. Digital transactions in India have skyrocketed, growing from Rs 952 lakh crore in FY14 to Rs 3,658 lakh crore in FY23.
💡 What This Means for You:
Prepare for higher costs if you rely on ATMs for cash withdrawals. This may encourage further adoption of cashless alternatives, aligning with India’s growing digital economy. 🚀
