ATM Withdrawal Cost To Increase: Know How To Avoid Costs

Banks offer limited free ATM transactions as the Reserve Bank of India (RBI) has approved an increase in the interchange fee. Therefore, charges increase after free transactions are exceeded. 

Interchange Fee is a bank's charge to the ATM operator when a customer withdraws cash from another ATM. This charge is passed on to the consumer after exceeding its free limit transaction.  

RBI and the National Payment Corporation of India (NPCI) have approved increasing the interchange fee from Rs 2 to Rs 19 per transaction. For Non-cash transactions, the cost has increased to Rs 7 per transaction.  

Earlier, consumers didn't have to bear the quick cost of providing services. However, they must now pay the revised fee on every exceeding number of ATM transactions monthly.  

The decision to increase charges comes after ATM operators and service providers request higher fees when operational costs rise. In 2021, to keep up with inflation, necessary changes were made.  

Let's find out some tips to avoid ATM withdrawal costs: 

Keep an eye on every transition to stay within the free withdrawal limit offered by the bank.  

The easiest way to avoid stepping outside the free transaction limit is using your bank's ATM, which is usually free.  

Using digital payment apps like UPI, PhonePe, or net banking can reduce cash withdrawals without worrying about interchange fee costs. 

Instead of withdrawing small amounts repeatedly, withdrawing a large amount can save transaction numbers, and you can use estimated cash for a few days for future use.