Beginning in the present day (Might 1), clients should shell out more cash for utilizing Automated Teller Machines (ATMs) because the price for such transactions has been elevated by Rs 2 to Rs 23 from Rs 21.
The brand new expenses shall be levied on clients after they exhaust free permissible transactions. At the moment, clients are eligible for 5 free transactions each month from their very own financial institution ATMs and three transactions from different financial institution ATMs.
The Reserve Financial institution of India (RBI) has additionally allowed ATM networks to determine on the ATM interchange price – the cost a financial institution pays to a different financial institution for providing ATM companies.
What’s the revised ATM transaction price from Might 1?
In March this 12 months, the RBI revised the interchange price and buyer expenses for utilization of ATM and money recycler machines.
Financial institution clients are eligible for 5 free transactions, which embrace monetary (money withdrawal) and non-financial transactions (stability enquiry) each month from their very own financial institution ATMs. They’re additionally eligible without spending a dime transactions (inclusive of monetary and non-financial transactions) from different financial institution ATMs – three transactions in metro centres and 5 transactions in non-metro centres.
“Past the free transactions, a buyer could also be charged a most price of Rs 23 per transaction. This shall be efficient from Might 1, 2025,” the RBI had stated in a notification.
The RBI stated that relevant taxes, if any, shall be moreover payable.
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The final revision within the ATM transaction price was performed in January 2022, when the RBI had allowed to extend the client expenses to Rs 21 per ATM transaction. This assessment was performed to compensate banks for the upper interchange price and given the overall escalation in prices.
On August 14, 2014, the RBI had put a ceiling or cap on buyer expenses at Rs 20 per ATM transaction.
How concerning the ATM interchange price?
The RBI stated the ATM interchange price shall be as determined by the ATM community.
The regulator had beforehand allowed a rise in interchange price per transaction from Rs 15 to Rs 17 for monetary transactions and from Rs 5 to Rs 6 for non-financial transactions in all centres, efficient August 1, 2021.
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The nation’s ATM community, an important a part of the banking infrastructure, is primarily managed by the Nationwide Monetary Change (NFS), a number one multilateral ATM community operated by the Nationwide Funds Company of India (NPCI).
The ATMs of a financial institution are related to the accounting platform of the financial institution by means of ATM switches. Inter-bank ATM networks are created by organising apex stage switches to speak between the ATM switches of various banks. The inter-bank ATM networks facilitate using ATM playing cards of 1 financial institution on the ATM(s) of different banks for fundamental companies like money withdrawal and stability enquiry. Banks proudly owning the ATMs cost a price for offering the ATM facility to the purchasers of different banks. This price known as ‘interchange price’ is recovered by the ATM deploying financial institution from the cardboard issuing banks.
Nonetheless the interchange price just isn’t mounted throughout banks and depends upon the phrases of bilateral / multilateral preparations. Banks with bigger ATM community deal with interchange charges as an vital stream of income.
India’s widespread ATM community
Automated Teller Machines (ATMs) have gained prominence as a supply channel for banking transactions in India. Banks have been deploying ATMs to extend their attain. Whereas ATMs facilitate quite a lot of banking transactions for patrons, their fundamental utility has been for money withdrawal and stability enquiry.
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As on the finish of March 2025, the variety of ATMs, CRMs and White-label ATMs (WLAs) deployed within the nation was 2.55 lakh. This included 2.19 lakh ATMs of banks and 36,216 white-label ATMs.
As of finish March 2025, public sector banks had deployed 1.33 lakh ATMs, whereas personal banks and overseas banks had deployed 77,117 and 993 ATMs, respectively.
Commensurate with the department community, bigger banks have deployed extra ATMs. Most banks want to deploy ATMs at areas the place they’ve a big buyer base or count on appreciable use. To extend the utilization of ATMs as a supply channel, banks have additionally entered into bilateral or multilateral preparations with different banks to have inter-bank ATM networks.