The National Payments Corporation of India (NPCI) and the Reserve Bank of India have approved to increase the ATM interchange for cash withdrawals from Rs 17 to Rs 19 with effect from May 1, 2025. The interchange was revised for domestic financial and non-financial transactions.
Non-financial transactions are subject to an interchange of Rs 7, according to an NPCI circular dated March 13. Business Standard has reviewed the letter sent to members of the National Financial Switch (NFS) ATM network. A separate GST is levied on the interchange rate.
‘NPCI had requested RBI approval to implement this change. In this regard, RBI vide letter dated 11th March 2025 has advised NPCI that the ATM interchange fees can be decided by the ATM network. Also, NPCI to communicate the date for affecting the revised fee to RBI,’ the circular said.
The revised interchange is not applicable for micro-ATM, interoperable cash deposit (card based and UPI based) and international ATM transactions.
Such transactions will continue to remain the same as per the existing rate. The interchange fee for balance enquiries has been set at Rs 7 excluding GST for transactions in Nepal and Bhutan.