ATM Charges Rise: ₹23 Per Transaction Beyond Free Limit from May 1
ATM Charges Set to Increase from May 1, 2025: RBI’s New Guidelines Impact Bank Customers
OT Webdesk: Following a Reserve Bank of India (RBI) circular issued on March 28, ATM withdrawal charges beyond the monthly free limit will become costlier for Indian bank customers starting May 1, 2025.
As per the revised guidelines, banks can now charge ₹23 per transaction beyond the free monthly allowance, up from the earlier ₹21.
Despite this increase, customers are still entitled to free ATM transactions as follows:
- 5 free transactions at their own bank’s ATMs.
- In metro areas, 3 free transactions at other bank ATMs.
- In non-metro cities, 5 free transactions at other bank ATMs.
These limits apply to both financial transactions, like withdrawals or deposits and non-financial ones like balance checks or PIN changes. Charges for exceeding these limits will apply to all commercial banks, regional rural banks, cooperative banks, ATM network operators, and white-label ATM providers.
The RBI clarified that rising operational costs and evolving banking requirements necessitated the hike. Experts believe that increased charges may encourage the adoption of fee-free alternatives, including MicroATMs and Business Correspondents (BC) networks, particularly in semi-urban and rural regions.
Interchange fees for ATM transactions remain unchanged for now, continuing at ₹17 for financial transactions and ₹6 for non-financial ones.
