Introduction: New ATM Fees Start Today
Beginning May 1, 2025, ATM cash withdrawals in India will become more expensive as the Reserve Bank of India (RBI) implements a revised transaction fee structure. The new charges affect customers using ATMs beyond their permitted free usage limit. If you’re a regular ATM user, here’s everything you need to know about the updated charges and limits.
What Has Changed in ATM Charges?
Under the revised rules, banks can now charge customers up to Rs 23 per transaction after the free limit is exhausted. Previously, the fee was set at Rs 21. This fee applies to both financial (withdrawals, deposits) and non-financial (balance checks, PIN changes) transactions.
The RBI stated: “Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1, 2025.”
Free Transaction Limits: What You Get
- Own Bank ATMs: 5 free transactions per month (financial + non-financial)
- Other Bank ATMs in Metro Cities: 3 free transactions per month
- Other Bank ATMs in Non-Metro Cities: 5 free transactions per month
These limits apply per account holder per month and include usage across all bank-owned and white-label ATMs.
Who Is Affected by These Charges?
The new fee structure applies to all banks regulated by the RBI, including:
- Commercial Banks
- Regional Rural Banks (RRBs)
- Co-operative Banks
- Authorised ATM Network Operators
- Card Payment Network Operators
- White-label ATM Operators
Cash Recycler Machine (CRM) Transactions Also Included
Charges under this new rule also extend to Cash Recycler Machines (CRMs)—ATMs that allow both withdrawal and deposit of money. However, CRM cash deposits are exempt from these charges.
What Are Interchange Fees?
Besides customer-facing transaction charges, banks also pay each other fees when customers use ATMs outside their home bank’s network. These are called interchange fees and remain unchanged:
- Financial transactions: Rs 19
- Non-financial transactions: Rs 7
These interchange fees are absorbed by the customer’s bank, which may then charge users for exceeding their transaction limits.
Why the Increase in Charges?
The RBI says the adjustment reflects rising operational costs, maintenance, and ATM security expenses. This is the first such revision in ATM fees since 2022. Banks are allowed to set transaction charges up to the Rs 23 cap, but many may absorb part of the cost for premium account holders.
Conclusion: Plan Your ATM Usage Wisely
With the new Rs 23 per transaction fee kicking in, it’s crucial for customers to be mindful of how often they use ATMs. Consider using online banking, UPI, and mobile wallets to manage your funds efficiently and avoid unnecessary charges.
For a full overview of financial regulation changes this month, check out our article on RBI Policy Changes Effective May 2025.
