Your ATM withdrawal will cost more soon! RBI allows banks to increase ATM withdrawal fees through this amount.
RBI allows banks to increase ATM withdrawal fees from Rs 21 to Rs 23 starting from May 1, 2025, exceeding the free limit.
Withdraw cash from ATMs to become more expensive when the RBI approves the fee rate hike
The Reserve Bank of India (RBI) announced that banks can increase the fees for ATM cash withdrawals to a monthly free limit. Starting from 1 May 2025, customers will have to pay Rs 23 per transaction once they exceed the free withdrawal. This is a rupee from the current 21 rupee.
Free ATM transaction restrictions
Bank clients are eligible for a certain number of free transactions each month, including financial (cash withdrawal) and non-financial transactions (such as balance inquiry or Mini statement):
Your own bank ATM: Free transactions 5 times a month.
Other Bank ATMs:
Metropolitan City: Free transactions 3 times a month.
Nomitro City: Free transactions 5 times a month.
Increase in charging after free limit
Once customers cross the free transaction limit, they will now trade Rs 23 instead of the earlier Rs 21. This applies to cash withdrawals and other financial transactions.
The fee applies to cash recycling machines
The Reserve Bank of India clarified that the new fees will also be used for cash recycling machines (CRMS) to withdraw cash. However, CRMS’s cash deposit transactions will not be affected.
The decision allows banks to pay for operating costs while still providing customers with a reasonable number of free ATM transactions.
