RBI, NPCI approve Rs 2 hike in ATM interchange fee from May 1, 2025

Mumbai, Mar 25, 2025

The revised interchange is not applicable for micro-ATM, interoperable cash deposit (card-based and UPI-based), and international ATM transactions

The National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) have approved an increase in the ATM interchange fee for cash withdrawals from Rs 17 to Rs 19, with effect from May 1, 2025.

The interchange has been revised for domestic financial and non-financial transactions.

Non-financial transactions are subject to an interchange fee 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 goods and services tax (GST) is levied on the interchange fee.

“NPCI had requested RBI approval to implement this change. In this regard, RBI, vide letter dated March 11, 2025, has advised NPCI that the ATM interchange fees can be decided by the ATM network. Also, NPCI is to communicate the date for effecting 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 as per the existing rates.

The interchange fee for balance enquiries has been set at Rs 7 excluding GST for transactions in Nepal and Bhutan.

At present, there are 1,349 NFS members, up from 1,296 in February last year, according to NPCI data.

The volume of NFS-approved transactions stood at 315 million in February 2025, down 13.7 per cent from 365 million in February 2024.

The number of ATMs under the NFS network in the country has remained constant at 2.65 lakh on a year-on-year (Y-o-Y) basis.

[The Business Standard]