ATM transactions set to get costlier from THIS date; Check new rates here

You will have to pay slightly extra when you withdraw money from ATMs of banks other than your own, starting May 1. This is because the Reserve Bank of India (RBI) has approved a hike in ATM interchange fees -- the amount a bank pays to another for using its services.

How much has the fee been hiked?
The fee for cash withdrawal has been raised by Rs 2 as it will now cost Rs 19 per transaction. Earlier the charge was Rs 17.
The fee for balance inquiry has been increased from Rs 6 to Rs 7.
The fee hike is part of a price revision authorised by the RBI after a recommendation from the National Payments Corporation of India (NPCI).

Why has the hike been done?
Reportedly, white-label ATMs -- those owned and operated by non-bank entities -- had been calling for a raise, claiming that the previous fees were no longer affordable due to rising operating costs.
The RBI has yet to issue an official notification about the fee hikes.

What impact will it have?
The move is expected to affect customers of smaller banks to a greater extent as such banks often have to depend on bigger banks for ATM services.
Notably, these fees become applicable after users exhaust their free monthly limits -- three transactions in non-metropolitan areas and five in metropolitan regions.
The RBI had previously revised ATM transaction fees in June 2021.
To avoid paying extra charges, customers may try to stick to their own bank's ATM or rely more on digital payment methods.