ATM Interchange Fee and Customer Charges Revised

RBI/2021-22/52 DPSS.CO.OD.No.S-182/06.07.011/2021-22 June 10, 2021 ( Updated as on March 28, 2025 ) The Chairman and Managing Director / Chief Executive Officer All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks / Authorised ATM Network Operators / Card Payment Network Operators / White Label ATM Operators Madam / Dear Sir, Usage of Automated Teller Machines / Cash Recycler Machines – Review of Interchange Fee and Customer Charges 1 The Reserve Bank of India had, from time to time, issued various instructions on the number of free ATM transactions and maximum charges that can be levied on a customer beyond the mandatory free transactions. Instructions have also been issued by RBI on interchange fee structure for ATM transactions. Based on a review, it has been decided as under: 2 The ATM interchange fee will be as decided by the ATM network. Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres. Beyond the free transactions, 3 a customer may be charged a maximum fee of ₹23 per transaction. This shall be effective from May 01, 2025. Applicable taxes, if any, shall be additionally payable. These instructions shall also apply, mutatis mutandis, to transactions done at Cash Recycler Machines (other than for cash deposit transactions). 2. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Yours faithfully, (Gunveer Singh) Chief General Manager-in-Charge 1 Substituted for: “The Reserve Bank of India had constituted a Committee in June 2019 under the Chairmanship of the Chief Executive, Indian Banks’ Association to review the entire gamut of Automated Teller Machine (ATM) charges and fees with particular focus on interchange structure for ATM transactions. 2. The recommendations of the Committee have been comprehensively examined. It is also observed that the last change in interchange fee structure for ATM transactions was in August 2012, while the charges payable by customers were last revised in August 2014. A substantial time has thus elapsed since these fees were last changed. Accordingly, given the increasing cost of ATM deployment and expenses towards ATM maintenance incurred by banks / white label ATM operators, as also considering the need to balance expectations of stakeholder entities and customer convenience” 2 Substituted for: “Allow increase in interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be effective from August 1, 2021.” 3 Substituted for: “the ceiling / cap on customer charges is ₹20 per transaction, as prescribed vide  circular DPSS.CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014 . To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022.”

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/52 · issued 10 Jun 2021. The plain-English explanation above is BankPulse’s own independent summary.

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