By News Desk 
Habit of Frequent Withdrawals? Time to Be Cautious!
If you often borrow money or withdraw cash frequently, it’s time to bring some discipline to your habits. Starting May 1, withdrawing money from ATMs is set to become more expensive. The Reserve Bank of India (RBI) has given the green signal to banks to hike ATM interchange fees, meaning that using ATMs outside your own bank’s network will now cost you more.
What Is Changing from May 1?
Until now, withdrawing cash from an ATM of a different bank (other than your own bank) would cost you ₹5-₹6 per transaction after exhausting your free limit. However, from May 1, this charge will increase to ₹7 per transaction.
This means any cash withdrawal or balance enquiry beyond the free transaction limit from another bank’s ATM will become slightly heavier on your pocket.
How Many Free Transactions Are Allowed?
- Metro cities: You get 5 free ATM transactions per month across different bank ATMs.
- Non-metro cities: You get 3 free transactions per month.
Once you cross this free transaction limit, the new increased charges will apply.
Other Charges You Should Know
- If you perform services like balance enquiry or mini statement at your own bank’s ATM (like SBI ATMs), there is no fee.
- But doing the same at an ATM of another bank will cost you ₹10 + GST for each non-financial transaction.
- In case of a failed transaction due to insufficient funds, you will continue to be charged a penalty of ₹20 + GST.
Why Are the Charges Increasing?
The National Payments Corporation of India (NPCI) had proposed a revision in ATM transaction charges, which the RBI has now approved. Banks say this step is necessary to cover the rising operational costs of maintaining and upgrading ATM infrastructure.
In short, from May 1, using other bank ATMs will get costlier. It would be smart to plan your cash withdrawals carefully and use your home bank’s ATM as much as possible to avoid unnecessary charges!
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