Fact Check: ATM withdrawal to cost ₹19, balance inquiry ₹7? Find the truth here
A message has been circulating, claiming that a fee of ₹19 will be charged for withdrawals and ₹7 for balance checks at ATMs for every transaction.
By Md Mahfooz Alam
Claim:A fee of ₹19 will be charged for withdrawals and ₹7 for balance checks at ATMs for every transaction.
Fact:The claim is misleading. These are ATM interchange fees that apply only after exceeding the free transaction limit at non-home bank ATMs.
As the financial year 2024-25 nears its end, a message has been circulating on social media with claims suggesting that ₹19 will be charged for withdrawals and ₹7 for balance checks at ATMs for every transaction.
Taking a cheeky dig at the government and consumers, an X user wrote, “Good news! Now, by withdrawing money from an ATM, you can contribute ₹19 to the nation's progress. Similarly, by checking your balance at an ATM, you can pay a ₹7 'National Interest Tax.' No need to worry—you still have to travel by airplane wearing slippers.” (Translated from Hindi) (Archive)
Fact Check
NewsMeter found the claim misleading, as the financial and non-financial fees on usage of ATMs are applicable after the free transaction limit is exhausted. Additionally, the ATM interchange fees are not new. They have been hiked by ₹2 and ₹1, effective May 1, 2025.
What are ATM interchange fees?
ATM interchange fees are the amount one bank pays another for facilitating ATM transactions. For example, if a customer of Axis Bank withdraws money from an SBI ATM, Axis Bank may charge a fee after the exhaustion of the free transactions limit at an SBI ATM in a month.
Media reports on the hike in ATM interchange fees?
We ran relevant keyword searches and came across a report by Business Today published on May 24, titled, “ATM withdrawals to cost more from May 1. Here are the new charges for each transaction.”
According to the report, the Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, which will directly raise the cost of cash withdrawals and balance inquiries for customers using ATMs outside their home bank network. This hike follows an RBI-approved revision based on a proposal by the National Payments Corporation of India (NPCI). White-label ATM operators had been advocating for an increase, citing rising operational costs that made the previous fees unsustainable. As per the report, effective May 1, 2025, the cash withdrawal fee will be increased from ₹17 to ₹19, while the balance inquiry fee will be increased from ₹ 6 to ₹7 per transaction. However, the report also mentions that the charges apply only after exhaustion of the free transaction limit.
According to reports from Financial Express and Money Control published on 23 and 26 March, the RBI has approved an increase in ATM interchange fees, effective May 1. However, banks have yet to decide whether to pass on these increased fees to customers. Discussions suggest that the additional costs will eventually be borne by customers.
The reports also quote a senior bank official, who stated, “Whenever interchange fees have been revised over the past 10 years, banks have always passed the changes on to customers. This time will be no different, and banks are expected to increase fees accordingly.”
What is the free transaction limit?
Currently, bank customers in metro areas can enjoy up to five free transactions per month at ATMs operated by other banks, whereas those in non-metro areas are limited to three free transactions, as reported by Business Today and Financial Express.
Therefore, we conclude that the claim stating ₹19 will be charged for withdrawals and ₹7 for balance checks is misleading, as these are ATM interchange fees that apply only after exceeding the free transaction limit at other bank ATMs.