Banks may hike ATM charges to Rs 23 per withdrawal: RBI

The Reserve Bank of India on Friday permitted banks to increase charges on ATM cash withdrawals beyond the mandatory free monthly usage by Rs 2 to Rs 23 per transaction from May 1.

Customers are eligible for five free transactions (inclusive of financial and non- financial transactions) every month from their own bank Automated Teller Machines (ATMs).

They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs — three transactions in metro centres and five in non-metro centres.

“Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1,” the RBI said. Currently, banks are allowed to charge Rs 21 per transaction beyond the free limiti. The RBI added the instructions shall also apply, mutatis mutandis, to transactions done at cash recycler machines.