Customers alert! Your automated teller machine (ATM) transactions are set to get costlier from May 1 onwards, with banks increasing charges by ₹2, for all transactions over the montly limit.
This comes after the Reserve Bank of India (RBI) said it would allow banks to increase ATM charges for money withdrawns exceeding the free usage. “Beyond the free transactions, a customer may be charged a maximum fee of ₹23 per transaction. This shall be effective from May 1, 2025,” RBI said in a circular on March 28.
The RBI’s circular is applicable to all commercial banks, including regional rural banks (RRBs), co-operative banks, authorised ATM network operators, card payment network operators, and white label ATM operators.
ATM Charges Hiked: How Much Costlier?
It will now cost you ₹ ₹23 per transaction from the earlier ₹21/each, on all transactions / withdrawals from bank ATMs beyond the monthly free use.
As of January 2025, there are 1,30,902 on-site ATMs and cash recycler machines (CRMs), and 85,804 off-site ATMs and CRMs, according to a PTI report.
How Many Free ATM Transactions / Withdrawals Can I Make?
At present, the central bank permits five free monthly withdrawals from’ ATMs of your own bank, and another three from other banks in metro cities. In non-metro cities, aside from the five free ATM transactions at your own bank, you get another five transactions at other banks.
Financial (money withdrawal, deposit, etc.) and non-financial transactions (checking balance, change of PIN, etc.) are included in the monthly free transactions — whether at your bank ATM or another bank’s ATM.
Are Only ATMs Affected by Hiked Charges?
No. According to the RBI circular, banks are also allowed to apply, mutatis mutandis, the charges hike to transactions done at CRMs (other than for cash deposit transactions).
Further, the circular also said the ATM interchange fee will be as decided by the ATM network. At present, interchange fee per transaction is ₹17 for financial transactions and ₹6 for non-financial transactions in all centres.
Why Are ATM Charges Being Hiked?
The RBI periodically updates the number of free ATM transactions and maximum charges that can be applied on a customer beyond the mandatory free usage. This is part of that revision process.
“While this hike may burden frequent ATM users, it presents a significant opportunity for Business Correspondents (BCs) and digital-first players,” Shikhar Aggarwal, Chairman, BLS E-Services told PTI.
“With ATM withdrawals becoming costlier, customers — especially in rural and semi-urban areas — will increasingly turn to MicroATMs and BC networks, which remain fee-free for transactions,” he added.
