What’s Changing in Your Wallet This May? All You Need To Know

While major money-related changes took place in April, May has also got certain financial changes lined up starting from ATM transaction fee to declining interest rates.

Additionally, due to the approaching tax season, taxpayers need to get their documents in order for a smooth income tax return (ITR) filing process.

Increased ATM Transaction Fee

The Reserve Bank of India (RBI) has approved a rise in ATM interchange fees, which is effective since May 1.

An ATM interchange fee is a charge paid by one bank to another for offering ATM services to customers. For transactions that exceed the monthly free limit, banks can now charge up to Rs 23 per transaction, which is applicable to both financial and non-financial transactions, plus applicable taxes.

The revised fee will be applicable at both traditional ATMs and Cash Recycler Machines (CRMs).

Home Loan Rates To Dip Further

As the central bank has reduced the repo rate, home loan interest rates are set to decline further in May. This was RBI's second such cut after February 7, 2025 and the repo rate now stands at 6%, down from 6.25% after the decision of the monetary policy committee (MPC).

Accordingly, some banks may pass on the benefits of the decision to their customers by reducing their repo rate linked lending rates (RLLR), which will directly benefit home loan borrowers, particularly existing borrowers. This will reduce interest rates, providing relief to homeowners.

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