Starting May 1, several financial and regulatory changes come into force. These include higher ATM transaction charges, a simpler income tax return (ITR) filing option for some taxpayers, and a major consolidation in regional rural banks. Here’s a look at the key updates:
1 / 6ATM transactions will cost more | Starting today, ATM charges go up as the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have approved a revision in interchange fees. For customers, this means banks can now charge up to ₹23 plus taxes per transaction beyond the free monthly limit. The higher fees apply to both financial and non-financial transactions at ATMs and Cash Recycler Machines (CRMs).
2 / 6The interchange fee — the amount banks pay one another for ATM services — has also been revised. It now stands at ₹19 for financial transactions and ₹7 for non-financial transactions, with GST added on top.
3 / 6Major banks like HDFC Bank, Punjab National Bank (PNB), and IndusInd Bank have already informed customers about the changes. HDFC Bank will now charge ₹23 plus taxes for cash withdrawals beyond the free limit, which includes five free transactions at HDFC Bank ATMs and three at other banks’ ATMs in metro cities. In non-metro areas, customers get five free transactions at other banks’ ATMs. Non-financial transactions such as balance enquiries and mini statements will continue to be free at HDFC Bank ATMs, but they will count towards the limit at other banks’ ATMs.
4 / 6PNB will implement its changes from May 9, charging ₹23 per financial transaction and ₹11 per non-financial transaction plus GST at other banks’ ATMs once customers exceed the free limit.
5 / 6Easier ITR filing | The Income Tax Department has rolled out simpler income tax return (ITR) forms to make the filing process easier for taxpayers. From this year, individuals with long-term capital gains up to ₹1.25 lakh can file returns using the ITR-1 form instead of the more detailed ITR-2. This change, which was notified on April 30, aims to reduce the compliance burden for small investors.
6 / 6‘One State, One RRB’ policy kicks off | The Finance Ministry’s major banking reform, the ‘One State, One RRB’ policy, takes effect today. Under this policy, 15 regional rural banks (RRBs) across 11 states will merge, reducing the total number of RRBs in the country from 43 to 28.
