ATM withdrawals to cost more from May 1. Here are the new charges for each transaction

If you're someone who frequently stops by the ATM for cash, your wallet might feel a little lighter starting May 1, 2025. The Reserve Bank of India has approved a hike in ATM interchange fees — a move that will directly raise the cost of cash withdrawals and balance checks for customers using ATMs outside their home bank network. The revised charges, pushed by white-label ATM operators and greenlit by the RBI, will soon be the new norm.

Starting May 1, customers will see a bump in ATM transaction charges across India.

Cash withdrawal fee: ₹17 → ₹19 per transaction  
Balance inquiry fee: ₹6 → ₹7 per transaction  
Effective from: May 1, 2025

These charges apply once users exhaust their free monthly limits — five transactions in metro cities and three in non-metro areas at other banks' ATMs.

The hike is part of an RBI-approved revision based on a proposal by the National Payments Corporation of India (NPCI). White-label ATM operators had been lobbying for an increase, arguing that the old fees were unsustainable given rising operational costs.

Smaller banks are likely to feel the pressure more, as they rely heavily on other banks' ATM networks due to their limited infrastructure. The increased interchange fee — the amount one bank pays another when a customer uses a different bank’s ATM — will now be passed more directly to customers.

With these higher charges kicking in, frequent ATM users may want to stick to their home bank’s ATMs or shift towards digital payment methods to avoid additional fees.