People immediately rush to the ATM as soon as they need money. It is easy to withdraw money from ATMs, which are open 24×7, and also get rid of the long queues in the bank. Currently, there is no charge for withdrawing money from an ATM up to a limit, but when the limit is completed, the charge is deducted from the account. Now the charge can be increased for withdrawing money from an ATM; yes, you read it right. In such a situation, now the burden on the pocket will increase on withdrawing money. Let us know RBI and NPCI Announce Higher ATM Transaction Fees, More money will be deducted on withdrawing money from an ATM.

Higher ATM Transaction Fees:
This news is important for those who withdraw money frequently from ATMs. If the report is to be believed, the rule to increase the charge on withdrawing cash from an ATM has been made jointly by the Central Bank RBI and NPCI. After this change, withdrawing cash will put more burden on the pocket. While earlier Rs 17 was deducted from the account on withdrawing money, now it will increase by Rs 2, and Rs 19 will be deducted.

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Impact of Higher ATM Transaction Fees:

Higher ATM transaction fee can be a significant impact on citizens. While majority of citizens from all the age groups use UPI for payments. But there are situations where everyone has a time when they should withdraw money from the ATM.

Increased Financial Burden: People who doesn’t have access or knowledge about the smart phones and UPI transactions are the ones to majorly get affected.

Effect on Smaller Banks: Not every bank is as big as Axis, Union etc. Smaller or regional banks might struggle with high costs of operation. Thus this also comes on to the customers for any services.

Encouragement of Digital Transactions: The fee hike could potentially make more people to adapt to digital payments. UPI transactions would see a potential rise in customers.

Impact on Low-Income Groups: People with low income rely on every penny they earn. These additional charges can be an unexpected burden on them. This is mostly seen in rural areas.

When will this rule be implemented?

Withdrawing money from an ATM will now become expensive. This rule can come into effect from May 1, 2025. Also know that a charge of Rs 6 is charged for checking mini statements, balances, and financial transactions, which will be increased to Rs 7. However, many people may not know that there is a charge for checking balances and taking out mini statements. In such a situation, people unnecessarily go to the ATM and start checking their account balance.

How many transactions are free in a month?

Earlier, money used to be deducted for withdrawing money from an ATM, but later some limit was fixed. Yes, all customers can withdraw money from an ATM up to three times in a month, that too without paying any charge. Money is deducted from the account for doing more transactions than this. Apart from this, if you withdraw money more than 3 times from any other ATM other than your bank’s ATM, then an interchange fee has to be paid.

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