Guwahati: The Reserve Bank of India (RBI) has approved a hike in ATM interchange fees, which will come into effect on May 1, 2025.

This means that customers will have to pay more for cash withdrawals and balance inquiries at ATMs outside their home bank network.

According to the revised fees, cash withdrawals will cost between Rs 17 to Rs 19 per transaction, up from the current fee. Balance inquiry fees will also increase from Rs 6 to Rs 7 per transaction.

The hike is expected to affect smaller banks with limited ATM networks, forcing them to rely on bigger banks and ultimately increasing costs for consumers.

Customers who exceed their free monthly transaction limits will be charged the new fees.

The move may encourage regular ATM users to switch to digital payment methods or stick to their home bank's ATMs to avoid the higher fees. This is the first revision of ATM fees since June 2021. However, the RBI is yet to issue an official notification on the revised fees.