ATM withdrawals & balance checks get costlier: Pay ₹19 for cash, ₹7 for inquiry

From May 1, withdrawing cash from ATMs will become more expensive as the Reserve Bank of India (RBI) has decided to increase interchange fees, according to a report by DD News. The revised charges will apply once customers exceed their free transaction limits—five transactions in metro cities and three in non-metro locations at ATMs of other banks.

As per the report, users will now be required to pay an additional ₹2 for every withdrawal beyond the free limit. The charge for non-cash transactions has also gone up by ₹1. This means withdrawing money from an ATM will now cost ₹19 per transaction, an increase from the earlier ₹17.

Checking your account balance at an ATM will now incur a fee of ₹7 per transaction instead of ₹6, as per the official notification. In addition to ATM charges, new banking rules will also impact savings account requirements and credit card benefits.


Banks such as SBI, Punjab National Bank, and Canara Bank are revising their minimum balance rules. The required balance will now be determined based on whether an account is located in an urban, semi-urban, or rural area. Failing to maintain the required balance may lead to penalty charges.


Several banks, including SBI and IDFC First Bank, are modifying the benefits on their co-branded Vistara credit cards. Perks such as ticket vouchers, renewal benefits, and milestone rewards will be removed. Axis Bank will implement similar changes from April 18, impacting its Vistara credit cardholders.


Interchange fees are charges imposed by a bank for allowing another bank’s customers to use its ATM services. This fee, which is usually a fixed amount per transaction, is often passed on to customers as part of their banking costs.

The RBI decided to revise these fees after white-label ATM operators requested an increase, citing higher operational costs affecting their business, the report stated.

These new charges will apply nationwide, impacting customers, particularly those from smaller banks. Since smaller banks depend on larger financial institutions for ATM services, they may be more affected by the rising costs.