ATM: ATM transactions will become costlier from May 1, know the new charges on cash withdrawal..

From May 1, ATM withdrawal is going to be more expensive in the country. The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees. This means that additional charges will be levied on financial transactions through ATMs from May. ATM interchange fee is the charge that one bank pays to another for providing ATM services.

This fee is usually a fixed amount per transaction. It is often passed on to customers as part of their overall transaction cost.

Decision after demands from operators

RBI announced new charges after demands from white-label operators. Operators argued that increasing operational costs were affecting their business. These changes will increase the burden on customers who prefer cash withdrawal over digital transactions.

The increase in ATM charges will be applicable across the country. Additional charges will be applicable once customers have completed their fee limit. The new charges are expected to have a bigger impact on customers of smaller banks, as these banks depend on larger banks for ATM infrastructure and related services.

What are the new ATM charges?

From May 1, customers will have to pay an additional Rs 2 for financial transactions. The new fee for non-financial transactions has been increased by Rs 1.

A charge of Rs 19 will be levied on cash withdrawal at ATMs, which was Rs 17 earlier. Similarly, a charge of Rs 7 per transaction will be levied on the balance check facility. Let us make it clear that these charges will be applicable only when the free limit is over.

ATMs were once considered revolutionary. However with the growing trend of digital payments, their use has now decreased.

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