Withdrawing money from ATM will become expensive!
Withdrawing money from ATM can be heavy on your pocket from May 1, 2025. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) has approved the increase in ATM interchange fee. Due to this, withdrawing cash or checking balance will now become a bit expensive for customers using ATMs outside the home bank network.
ATM transaction charge will increase by this much from May 1
For withdrawing cash, a fee of up to Rs 17-19 will have to be paid per transaction.
The charge for checking the balance is Rs 6-7 per transaction.
This is the free transaction limit
These charges will be collected from you only when you exceed the limit of free transactions in a month. In metro cities, the limit of free transactions from ATMs of other banks other than the home bank is five, while in non-metro cities the limit of free transactions is three. The Reserve bank has given the green signal to the proposal of National Payment Corporation of india (NPCI). Actually, white label ATM operators were talking about increasing the fees. Their argument was that the old fees are not enough in view of the increasing operational costs.
What is a White Label ATM?
White Label ATMs were installed by the Reserve bank under the Payment and Settlement System Act 2007. It has been started with the aim of increasing the reach of ATMs in many remote parts and small towns of the country. There is no board of any bank installed in it. Along with withdrawing money from debit/credit card, facilities like bill payment, mini statement, check book request, cash deposit are also available in it.
Small banks will be affected
The pressure of increasing ATM interchange fees will fall on small banks because due to limited infrastructure, their ATMs are usually less. They depend more on the ATM network of other banks. Let us tell you that interchange fee is the amount that one bank pays to another bank when its customer uses the ATM of another bank.
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