Context:
The National Payments Corporation of India (NPCI), with approval from the Reserve Bank of India (RBI), has announced an increase in ATM interchange fees for cash withdrawals from ₹17 to ₹19, effective May 1, 2025.
Details of Fee Revision
| Transaction Type | Previous Interchange Fee | Revised Interchange Fee |
|---|---|---|
| Cash Withdrawal (Domestic) | ₹17 | ₹19 |
| Non-Financial Transactions (Domestic) | ₹6 | ₹7 |
| Balance Enquiries (Nepal & Bhutan) | ₹6 | ₹7 (excluding GST) |
Note: All revised rates are exclusive of GST.
NPCI Circular Highlights
- Circular Date: March 13, 2025
- RBI Approval: Confirmed via RBI letter dated March 11, 2025.
- Implementation Date: May 1, 2025.
- The revised interchange is not applicable for:
- Micro-ATM transactions
- Interoperable cash deposits (both card-based and UPI-based)
- International ATM transactions
Key Points from RBI and NPCI
- RBI allowed ATM networks to independently decide interchange fees.
- NPCI will communicate the implementation date to RBI.
- The changes are intended to support the sustainability of ATM operations and compensate for rising costs.
Impact on Stakeholders
| Stakeholder | Impact |
|---|---|
| Banks & ATM Operators | Increased revenue on each cash withdrawal and non-financial transaction. |
| Consumers | No direct increase in fees unless banks pass on the rise; encourages digital transactions. |
| ATM Network (NFS) | Continued alignment with market-driven pricing and operational costs. |
Exemptions to Note
The revised interchange fees will not apply to:
- Micro-ATM transactions
- Interoperable cash deposits (via cards or UPI)
- International transactions at ATMs
The interchange fee revision reflects RBI and NPCI’s efforts to ensure ATM operations remain viable and sustainable, balancing the cost burden between banks and ATM operators while maintaining customer access.
