ATM withdrawal, balance inquiry fees set to rise from May 1

The RBI approved the fee increase following a proposal from NPCI, with white-label ATM operators advocating for higher fees due to rising operational costs, primarily affecting customers who use ATMs outside of their home bank network

Starting May 1, customers may face higher charges for cash withdrawals and balance inquiries at ATMs, following the Reserve Bank of India’s (RBI) approval of increased interchange fees. This revision will make transactions at non-home bank ATMs more expensive.

The revised fees are as follows: cash withdrawal will cost ₹19, up from ₹17 per transaction, and balance inquiry will cost ₹7, up from ₹6 per transaction.

These charges will apply when customers exceed their free monthly transaction limits—five transactions in metro cities and three in non-metro areas.

The RBI approved the hike following a proposal from the National Payments Corporation of India (NPCI), with white-label ATM operators advocating for higher fees due to increasing operational costs. The changes primarily affect customers who use ATMs outside their home bank network.

Smaller banks to face greater impact

Smaller banks, which rely more on other banks' ATM networks, could face a greater impact from the increased interchange fee, potentially leading to higher maintenance charges on bank accounts. However, frequent ATM users can avoid these additional costs by using their home bank’s ATMs or opting for digital payment methods.

In addition to the ATM fee changes, customers can expect adjustments in credit card payment structures starting April 2025. Axis Bank has announced modifications to its Vistara Credit Card benefits, following Vistara’s merger with Air India, effective from April 18, 2025. Similarly, SBI Card will revise its reward program, offering fewer reward points on select transactions between March 31 and April 1, 2025.

These changes highlight the ongoing shift in financial services, with rising costs impacting both ATM transactions and credit card offerings.

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