ATM Withdrawals to Get Costlier from May 1, RBI Hikes Charges to ₹23 Per Transaction

New Delhi: If you frequently use ATMs for cash withdrawals, get ready to pay more starting May 1, 2025. The Reserve Bank of India ( RBI ) has permitted banks to increase ATM transaction charges beyond the free monthly usage limit from ₹21 to ₹23 per transaction.

What This Means for You

Customers will continue to enjoy a set number of free ATM transactions every month, after which they will have to pay the revised fee. The free transaction limits remain unchanged:

From Own Bank ATMs

• 5 free transactions per month (both financial and non-financial).

From Other Bank ATMs

• 3 free transactions in metro cities.
• 5 free transactions in non-metro areas.

Once customers exhaust these limits, they will be charged ₹23 per transaction, applicable to both financial (cash withdrawals) and non-financial (balance inquiry, mini statement, etc.) transactions.

Applicability to Cash Recyclers

The new transaction fee will also apply to withdrawals made from cash recycler machines (CRMs), except when used for cash deposits.

Current Charges & Change

At present, banks charge ₹21 per transaction once a customer exceeds the free limit. With the ₹2 hike, the new charges will be ₹23 per transaction starting May 1, 2025.

Why the Hike?

The RBI revises ATM fees periodically to account for operational costs, infrastructure maintenance, and cash management expenses borne by banks.

To avoid unnecessary charges, it’s advisable to plan ATM withdrawals wisely, use digital payment options, and monitor your free transaction limit each month.