Withdraw cash from your own bank's ATM and it is usually free. Walk into a different bank's ATM and you may notice a small deduction you did not expect. That gap is the inter-bank ATM charge, a fee Nepal Rastra Bank allows banks to collect whenever you use a card issued by one bank at another bank's machine. This guide explains exactly how much that fee can legally be, how it evolved over the past few years, what else gets charged (balance enquiries, foreign transactions), and how to avoid paying it more often than you need to.
Quick Answer
- Your own bank's ATM: Cash withdrawal is normally free.
- Another Nepali bank's ATM (inter-bank): Up to Rs 15 per withdrawal, capped by NRB.
- Balance enquiry at another bank's ATM: A separate small fee, commonly around Rs 50, decided by the bank.
- Using your Nepali card abroad (e.g. India): A higher flat fee, often around Rs 200-250 per transaction, plus currency conversion.
Banks can charge up to these ceilings, not exactly these amounts. Some banks charge less, and a handful still waive select fees as a customer benefit, so always confirm your own bank's current schedule of charges.
What Counts as an "Inter-Bank" ATM Transaction?
An inter-bank ATM transaction happens whenever you insert a card issued by Bank A into an ATM owned by Bank B. It does not matter whether the two banks belong to the same domestic card-switch network; if the ATM is not operated by your own card-issuing bank, it is treated as inter-bank for fee purposes. Nepal's ATM infrastructure runs mainly on two interoperable domestic switch networks, NEPS (Nepal Electronic Payment Systems) and SCT (Smart Choice Technologies), which is why most Nepali bank cards work at most other banks' ATMs across the country even though a fee applies.
How the Inter-Bank ATM Fee Changed Over the Years
The fee has moved up and down several times as NRB balanced bank revenue against consumer cost, especially around the COVID-19 period when the central bank temporarily waived it altogether to keep people out of crowded branches.
| Period | Rule |
|---|---|
| Pandemic period (2020) | Fee waived completely to reduce branch and cash handling pressure during lockdowns. |
| From January 2021 | First two inter-bank ATM transactions per month free; up to Rs 20 per transaction after that. |
| Integrated Payment System Directive, 2079 (2023 amendment) | Maximum fee reduced to Rs 15 per inter-bank ATM transaction, the ceiling still in force today. |
Under the current rule, banks are permitted to charge up to Rs 15 for every inter-bank ATM cash withdrawal, rather than only after a free monthly quota. In practice, a few banks still choose to waive the fee for a limited number of transactions as a loyalty perk, so it is worth checking your own bank's published tariff sheet rather than assuming the maximum always applies.
Full Breakdown of Charges You May See
| Transaction | Typical charge | Who sets it |
|---|---|---|
| Cash withdrawal, own bank's ATM | Free | Bank policy, industry standard |
| Cash withdrawal, another Nepali bank's ATM | Up to Rs 15 | NRB ceiling; bank sets exact figure |
| Balance enquiry, own bank's ATM | Usually free | Bank policy |
| Balance enquiry, another bank's ATM | Roughly Rs 50 | Bank policy, no fixed NRB figure |
| Cash withdrawal abroad (e.g. India) using a Nepali card | Roughly Rs 200-250 | Bank policy plus network fees |
| Foreign card used at a Nepali ATM | Often a flat service fee, commonly a few hundred rupees | Host bank policy |
| Currency conversion at the ATM ("dynamic currency conversion") | Poor exchange rate margin if accepted | ATM operator; always decline this option and let your home bank convert |
Tip: Always choose "without conversion" or "decline conversion"
When a Nepali ATM asks whether you want the transaction converted to your home currency on the spot (dynamic currency conversion), decline it. Choosing NPR and letting your own card network or bank handle the conversion almost always gives you a better exchange rate.
Fee Cost Calculator: What Will Your ATM Habits Cost You in a Month?
Enter how many times a month you typically withdraw from another bank's ATM and how many times you check your balance elsewhere, and this tool estimates your monthly inter-bank fee cost at the current maximum rates.
Monthly Fee Estimator
Based on current ceilings: Rs 15 per inter-bank withdrawal, ~Rs 50 per inter-bank balance enquiry.
Please enter zero or a positive whole number in both fields.
How to Reduce or Avoid Inter-Bank ATM Fees
Plan around your own bank's ATM locations
Most banking apps show a nearby-ATM finder. Checking it before heading out often saves you the Rs 15 fee entirely, especially in cities where your own bank has multiple branches.
Withdraw larger amounts, less often
Since the fee is charged per transaction regardless of amount, withdrawing closer to your per-transaction limit in one go, within your daily cap, reduces the number of fees you pay overall.
Check your balance through the app, not the ATM
Mobile and internet banking balance checks are free and instant, avoiding the separate inter-bank balance enquiry fee altogether.
Ask about fee waivers on your card tier
Some premium debit cards or salary accounts include a set number of free inter-bank transactions per month as a bundled benefit. It costs nothing to ask your bank whether yours does.
Frequently Asked Questions
What is the maximum inter-bank ATM fee in Nepal right now?
Nepal Rastra Bank's current ceiling allows banks to charge up to Rs 15 per inter-bank ATM cash withdrawal. Some banks charge less or occasionally waive it, so check your own bank's fee schedule.
Is checking my balance at another bank's ATM also charged?
Often yes, and it is billed separately from a cash withdrawal fee. It is not fixed at a single NRB-mandated figure the way the withdrawal fee is, so the amount varies by bank; using your mobile banking app to check balance avoids this fee.
Do I get charged if the ATM transaction fails or is declined?
A transaction that fails without dispensing cash should not attract the inter-bank withdrawal fee. If your account is debited for a failed ATM transaction, NRB rules require banks to reconcile and reverse the amount within a set number of days; contact your bank with the transaction slip or SMS alert if this happens.
Why do some banks not charge the fee at all?
Individual banks can choose to absorb the cost as a customer benefit, often tied to a specific account type, salary account arrangement, or promotional offer. The Rs 15 figure is a ceiling banks may charge up to, not a fee every bank is required to collect.
Does the inter-bank fee apply to POS or online purchases too?
No, this fee specifically covers ATM cash withdrawals (and, separately, balance enquiries) at another bank's machine. Point-of-sale purchases and online transactions follow a different fee structure set by the merchant's bank and card network.
Is the fee different for credit cards versus debit cards?
The inter-bank ATM fee itself is generally similar across card types, but credit card cash withdrawals typically carry an additional cash-advance charge and immediate daily interest set by the issuing bank, on top of the inter-bank fee, making them a costlier way to get cash than a debit card.
Figures can change
Fee ceilings are set by NRB's payment system directives and can be revised. This guide reflects the rule in effect as of 2026. For balance enquiry and international fees, which are set by individual banks rather than a fixed NRB figure, always check your own bank's official tariff sheet.
Related Reading
Not sure how much you are even allowed to withdraw in the first place? See our guide on Nepal's 2026 ATM withdrawal limits for the current daily and monthly caps. Using an unfamiliar ATM regularly also means checking the machine itself; our guide on how to spot an ATM skimming device in Nepal covers what to look for before inserting your card. And if a machine ever swallows your card mid-transaction, our guide on what to do if your ATM card gets stuck in Nepal walks through the recovery steps.
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