The Confederation of ATM Industry (CATMI) has addressed the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to urge a rise in the interchange fee. CATMI aims to increase the ATM withdrawal fee to a maximum of Rs 23 per transaction. The card-issuing bank pays interchange fees to the bank from which the card is used to withdraw cash. 

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Banks charge a fee for cash and non-cash ATM transactions if a customer exceeds the free monthly limit. To date, if the free monthly ATM withdrawal limit is exceeded, the bank charges an extra Rs 21 tax for each transaction that customers pay.

Daily ATM withdrawal limit

The maximum cash withdrawal limit is varied for each bank in India. However, the maximum daily restriction for certain banks begins at 10,000 and rises to 50,000 for premium clients. 

Banks now provide savings account users a minimum of five free transactions each month in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi. Three transactions at any other bank's ATM are free.