Despite the rise in digital payments, many people still spend money by withdrawing cash from ATMs. Those who repeatedly withdraw money from ATMs will have to pay more from May 1.

The Reserve Bank of India has approved an increase in ATM interchange fees. Charges will be levied on both cash withdrawals and balance checks from ATMs.

White-label ATM operators (private companies that run ATMs) have proposed to increase the fees charged from customers for transactions. The Reserve Bank of India has approved these new charges. These new charges will be applicable in all parts of the country from May 1.

Also Read: Rain during a match at the Visakhapatnam Stadium?

The charges are as follows..
Cash withdrawal fee: Between Rs. 17- Rs. 19 per transaction
Balance inquiry fee: Between Rs. 6- Rs. 7 per transaction

Bank customers can make five transactions free of charge from ATMs in metro cities and three transactions from ATMs in non-metro areas per month. If they exceed that, a charge will be levied. If you withdraw money from an ATM of another bank using your bank debit card, these charges will be levied.

The RBI finally approved these charges as per the proposal of the National Payments Corporation of India after white-label ATM operators demanded an increase in fees in view of the rising operating costs.

This is likely to have a greater impact on small banks. Because they have limited infrastructure. They are heavily dependent on the ATM networks of other banks.