New Delhi: Starting May 1, ATM users in Odisha and other parts of India will face higher charges for cash withdrawals.

Following the Reserve Bank of India’s (RBI) approval to increase ATM interchange fees, customers who exceed their free transaction limit will incur additional costs when using ATMs for financial transactions.

An ATM interchange fee is the charge one bank pays to another for providing ATM services. This fee, typically a fixed amount per transaction, is often passed on to customers as part of their banking expenses.

From May 1, customers will have to pay an additional ₹2 for each financial transaction beyond the free limit, making the cost of withdrawing cash ₹19 per transaction, up from ₹17.

For non-financial transactions, such as balance inquiries, the fee will rise by ₹1, bringing the cost of checking account balances to ₹7 per transaction.

The revised charges will apply to transactions exceeding the limit of three in metro cities and five in non-metro areas.

Sources suggest with this fee increase, customers who still rely on cash withdrawals through ATMs may feel the financial strain, potentially encouraging a shift towards digital payment methods.