Customers who frequently use ATMs for their financial transactions will have to pay additional charges for withdrawing money from ATMs beyond a certain limit.
आपकी जेब पर और बढ़ेगा बोझ, 1 मई से ATM से पैसे निकालना हो जाएगा महंगा
Withdrawing money from ATMs in India is going to get costlier from May 1, as the Reserve Bank of India (RBI) has approved a hike in ATM interchange fees. This will mean that customers who use ATMs more for their financial transactions will have to pay additional charges for withdrawing money from ATMs beyond a limit.
The ATM interchange fee is paid by one bank to another for providing ATM services. This fee is a fixed amount for each transaction and is charged to the customer as a banking cost.
The RBI decided to revise these charges following requests from white-label ATM operators, who argued that rising operational expenses were affecting their business.
The fee hike will be applicable across the country and is expected to impact customers, especially those of smaller banks.
These banks depend on larger financial institutions for ATM infrastructure and related services, making them more vulnerable to rising costs.
From May 1, customers will have to pay Rs 2 extra for each transaction after the free limit from ATMs. Withdrawing cash from an ATM will cost Rs 19 per transaction, up from Rs 17 earlier.
Apart from this, if the customer uses the ATM for other purposes such as balance inquiries other than withdrawing money, then Rs 1 extra will have to be paid.
According to the official notification, checking the account balance will now cost Rs 7 per transaction, up from Rs 6 at present.
While ATMs were once seen as a revolutionary banking service, they are now struggling in India with the rise of digital payments.
The convenience of online wallets and UPI transactions has significantly reduced the need for cash withdrawals.
Government data shows that the value of digital payments in India was Rs 952 lakh crore in FY14.
This figure is set to rise to Rs 3,658 lakh crore by FY23, reflecting a massive shift towards cashless transactions.
This new fee hike may feel burdened for those customers who still depend on cash transactions.
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