RBI Hikes ATM Interchange Fees, Making Withdrawals Costlier from May 1, 2025
From May 1, 2025, withdrawing money from ATMs has become a bit heavier on the pocket. The Reserve Bank of India increased the ATM interchange fees, or banks charging another bank a fee to access ATMs. That punch hits customers directly, particularly those who exceed free monthly withdrawal limits. Now, the cost of cash is not just tactile but also monetary. If you rely on ATMs often, you might feel the pinch more than before.
RBI ATM Rules – Good News for Everyone
There’s a flip side to this, and it’s actually good news. RBI’s new guideline is changing what kind of notes people get when they use ATMs. If you’ve ever been annoyed about getting only Rs 500 notes, things are looking up. More and more machines are now giving out Rs 100 and Rs 200 notes. These smaller denominations are exactly what people need for daily expenses especially in rural and semi-urban areas where digital payments aren’t always an option.
And it’s working. According to CMS Info Systems, which runs over 73,000 ATMs across India, the number of machines dispensing smaller notes has jumped by 65% compared to December 2024. That ain’t no small change, that’s a cash revolution.
Rs 100 and Rs 200 Notes Replace Big Bills
Currently, 73% of ATMs in all of India are already dispensing Rs 100 and Rs 200 notes. This shift is part of RBI’s larger goal: make cash more usable for the common person. From buying vegetables to paying auto drivers, small notes matter.
Anush Raghavan, President of CMS Info Systems, further noted that 60% of Indian consumer expenditure still occurs in cash. And the new push for smaller notes is bridging a crucial gap especially in places where cash is king.
This is just the beginning. The RBI’s next target, by March 31, 2026, 90% of all ATMs must follow this rule. This small change is slowly making a big difference in the lives of millions.
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