The Reserve Bank of India (RBI), the country’s central banking authority, has announced an increase in ATM withdrawal charges beyond the free monthly limit. Effective from May 1, 2025, banks can charge up to ₹23 per withdrawal, up from the current ₹21. The revised charges will also apply to cash recycler machines, excluding cash deposit transactions.
The Reserve Bank of India (RBI), the country’s central banking authority responsible for regulating the monetary system, has announced a revision in ATM withdrawal charges. Starting May 1, 2025, banks will be allowed to charge up to ₹23 per transaction once customers exceed their free withdrawal limits.
Currently, banks can charge ₹21 per transaction after customers exhaust their free monthly transactions. The new rule increases this fee by ₹2. The RBI clarified that the revised charges will also apply to transactions at cash recycler machines, excluding cash deposits.
New ATM Withdrawal Charges Structure
Customers are entitled to a certain number of free ATM transactions every month before the charges apply:
- Five free transactions per month at ATMs of their own bank.
- Three free transactions at other bank ATMs in metro cities.
- Five free transactions at other bank ATMs in non-metro cities.
Beyond these limits, the revised charges of ₹23 per transaction will take effect.
Impact on Customers and Banks
The decision is expected to impact frequent cash users, especially in urban areas where digital transactions are on the rise. Banks are likely to benefit from increased revenue through ATM transactions, while consumers may shift further towards digital payments to avoid higher withdrawal fees.
This move aligns with the RBI’s broader push toward digital transactions, reducing dependency on cash-based payments across India.
