The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have approved an increase in the ATM interchange fee. Starting on May 1, 2025, the fee for cash withdrawals at ATMs will increase. Currently, the interchange fee for cash withdrawals is ₹17. This will be revised to ₹19. This represents an increase of ₹2 per transaction.
This revised interchange fee applies to domestic financial and non-financial transactions. According to an NPCI circular dated March 13, the interchange fee for non-financial transactions will be ₹7. It’s important to note that a separate Goods and Services Tax (GST) is applicable on top of these interchange fees.
- Effective Date: May 1, 2025
- Cash Withdrawal Fee: Increases from ₹17 to ₹19
- Non-Financial Transactions: Interchange fee set at ₹7
- Applicability: Domestic transactions only
Check Out: RBI Monetary Policy 2024
The National Payments Corporation of India (NPCI) had requested approval from the RBI to implement an ATM Interchange fee increase change. The RBI responded with a letter dated March 11, 2025. In this letter, the RBI advised the NPCI that ATM network providers can decide on the ATM interchange fees. The NPCI is responsible for communicating the effective date of the revised fee to the RBI.
