India, March 25 -- The Reserve Bank of India (RBI) has approved a hike in ATM interchange fees, raising the cost of cash withdrawals from May 1, 2025 onwards.

ATM interchange fees refer to the amount one bank pays to another when a customer uses a different bank's ATM to withdraw money.

The new charges which were pushed by white-label ATM operators, will be as follows, according to a Business Today report.

Cash withdrawal fee: Rs.19 per transaction from Rs.17 earlier.

Balance inquiry fee: Rs.7 per transaction from Rs.6 earlier.

These charges will be applicable once users exhaust their free monthly limits, which are five transactions in metro cities and three in non-metro places at other banks' ATMs.

This fee hike also came about bas...