Bad news for all bank customers, pay these charges on ATM Withdrawal from today, how can you avoid it?

All bank customers must be aware about new ATM withdrawal fees which will be charged to them after the free limit is exhausted.

Written by: Anirudha Yerunkar Edited by: Anirudha Yerunkar

Published: May 1, 2025, 11:43 AM IST

Share

Share Article

• Facebook
• WhatsApp
• X
• Email
• Telegram
• Linkedin

https://www.india.com/business/bad-news-for-all-bank-customers-pay-these-charges-on-atm-withdrawal-from-today-how-can-you-avoid-it-7791004/ Copy

From today, May 1, 2025, banks can increase charges for ATM transactions over the monthly free usage limit, as per the Reserve Bank of India (RBI) guidelines. However, customers can still get a limited number of free transactions before the charges are applied.

Revised ATM Charges

Under the revised rules, customers will have to now pay Rs 23 per transaction for ATM withdrawals beyond the monthly free limit. Earlier it was Rs 21. The new charges apply to both financial and non-financial transactions conducted at ATMs or Cash Recycler Machines (CRMs).

Free Transactions Allowed

Metro Cities: Customers can make up to five free monthly transactions at their own bank’s ATMs and three free transactions at ATMs of other banks.
Non-Metro Cities: Customers are entitled to five free monthly transactions at their own bank’s ATMs and an additional five free transactions at ATMs of other banks.

The free transaction limit includes both financial activities (e.g., withdrawals and deposits) and non-financial activities (e.g., balance inquiries and PIN changes).

The RBI circular, issued on March 28, 2025 is applicable to All commercial banks (including regional rural banks and co-operative banks), Authorized ATM network operators, Card payment network operators and White-label ATM operators.

The circular is also applicable to CRMs, where the hike applies to all transactions except cash deposits.

As of January 2025, India had 1,30,902 on-site ATMs and CRMs, 85,804 off-site ATMs and CRMs.

ATM Interchange Fee

The RBI has allowed ATM networks to set the interchange fee, which is currently Rs 17 per financial transaction and Rs 6 per non-financial transaction across all centers.

The fee hike will impact on those customers who utilize ATM withdrawals frequently and exceed the free monthly ATM transaction limit. Customers can monitor their usage and avoid extra charges. RBI is trying to regulate ATM operations and increase operational costs for banks.