TV
Starting today, bank customers across India will need to pay more when withdrawing cash from ATMs not owned by their own bank, once they exceed the number of free monthly transactions. This change comes as part of new regulations approved by the Reserve Bank of India (RBI), based on a proposal from the National Payments Corporation of India (NPCI).
Under the updated rules, the fee for cash withdrawals from other bank ATMs has been increased from Rs 21 to Rs 23 per transaction beyond the free limit. Additionally, customers will now be charged Rs 9—up from Rs 7, just to check their account balance at a non-home bank ATM.
These revised charges apply after the limit of free ATM transactions is crossed. In metropolitan areas like Delhi, Mumbai, Bengaluru, and Chennai, customers are allowed five free ATM transactions per month, including both financial and non-financial ones. In contrast, customers in non-metropolitan areas are entitled to only three such free transactions. Once this limit is crossed, the new fees will be applicable.
The decision is expected to impact a large section of the population, especially those who frequently use ATMs for cash needs, or who do not have convenient access to their own bank’s ATMs. While the RBI has stated that the changes reflect rising operational costs and the need to incentivize banks to maintain ATM infrastructure, consumer rights groups have expressed concern about the increased financial burden on customers.
Experts recommend that customers plan their ATM usage wisely to avoid unnecessary charges. Using digital banking services, withdrawing larger sums less frequently, or locating in-network ATMs can help minimize the impact of these new fees.
