ATM Cash Withdrawal Rules: Transactions To Become Costlier From May 1; New Credit Card Rules To Dent Your Pocket Too

Starting May 1, 2025, withdrawing cash and checking balances at ATMs will become more expensive as the RBI has approved an increase in ATM interchange fees.  

Customers using ATMs outside their home bank’s network will have to pay more, making transactions at non-home bank ATMs costlier, as per media reports. 

The cash withdrawal fee will rise from Rs 17 to Rs 19 per transaction, while the balance inquiry fee will increase from Rs 6 to Rs 7 per transaction.  

Customers get five free transactions per month in metro cities and three in non-metro areas. The new charges apply only after exceeding these limits.  

The RBI approved this revision based on a proposal from the National Payments Corporation of India (NPCI). Digital payments and home bank ATMs can help avoid extra charges. 

Smaller banks relying on other banks’ ATM networks may bear a greater burden due to increased interchange fees. 

From April 2025, major banks like SBI, IDFC First Bank, and Axis Bank will remove perks on co-branded Vistara credit cards, affecting ticket vouchers, milestone rewards, and renewal benefits. 

SBI, Punjab National Bank, Canara Bank, and other banks are revising their minimum balance rule. The required balance will now differ based on the account’s location, whether in an urban, semi-urban, or rural area. (Image Credit: File Photo)