Actually, some time ago RBI announced to increase in ATM withdrawal fees and this decision of RBI will come into effect from May 1. In such a situation, if you cross the limit of free transactions, then you have to be ready to pay more money.

Some changes happen on the first date of every month. On May 1, there are going to be changes regarding ATM transaction charges. Actually, some time ago RBI announced to increase ATM withdrawal fees and this decision of RBI will come into effect from May 1. In such a situation, if you cross the limit of free transactions, then you have to be ready to pay more money. However, those people who use ATM more need to worry more about this.

How much charge will have to be paid from May 1

From May 1, customers will have to pay an additional Rs 2 for every transaction after crossing the monthly free transaction limit. Currently, banks charge Rs 21 for crossing the free transaction limit, but from May 1, you will have to pay Rs 23 for this. However, there will be no change in the free transaction limit. This limit will remain the same as before. You will still get 5 free transactions from your bank's ATM. At the same time, you will get a chance to do 3 free transactions in metro cities and 5 free transactions in non-metro cities from other ATMs. After exceeding the number of free transactions, you will have to pay an additional charge.

Why did RBI decide to increase ATM withdrawal fees?

Actually, white-label i.e. third party ATM operators and banks were demanding an increase in the charge for a long time. Their argument was that increasing operational expenses are affecting their business. NPCI had also recommended RBI to increase the charges. After this, RBI decided to increase the ATM withdrawal fee. The new charges will be implemented across the country from May 1.

Digital payments reduce the need for ATMs

The increase in ATM withdrawal charges is a problem for those who are more dependent on cash and often do cash transactions through ATMs. Those who do limited transactions need not worry. Let us tell you that ATM service has been greatly affected due to digital payments in India. The facility of online wallets and UPI transactions has reduced the need for cash withdrawals to a great extent.