ATM Interchange Fee Hike: ₹17 to ₹19 From 1 May 2025
Why in the news
NPCI, with RBI’s approval, raised the interchange fee on ATM cash withdrawals, effective 1 May 2025, to offset rising costs of running ATMs.
Revised fees
| Transaction | Old fee | New fee |
|---|---|---|
| Cash withdrawal (domestic) | ₹17 | ₹19 |
| Non-financial (domestic) | ₹6 | ₹7 |
| Balance enquiry (Nepal and Bhutan) | ₹6 | ₹7 |
- All rates are exclusive of GST.
- Circular: 13 March 2025; RBI approval letter: 11 March 2025.
- RBI let ATM networks decide interchange fees on their own.
Exemptions
- Micro-ATM transactions.
- Interoperable cash deposits, via card or UPI.
- International ATM transactions.
Impact
- Banks and ATM operators: more revenue per withdrawal and non-financial transaction.
- Consumers: no direct rise unless banks pass it on; nudges digital payments.
- NFS network: pricing stays aligned with costs.
Exam angle
- Issuing body: NPCI; effective date: 1 May 2025.
- Fee for domestic withdrawal now: ₹19.