RBI allows banks to hike ATM charges to Rs 23 per withdrawal from May 1
The Reserve Bank of India (RBI) on Friday permitted banks to increase charges on Automated Teller Machines (ATM) cash withdrawals beyond the free monthly usage, raising the fee by Rs 2 to Rs 23 per transaction, effective from May 1, 2025.
Customers will continue to be eligible for five free transactions per month—including financial and non- financial transactions—at their own bank’s ATMs.
Additionally, they can avail of free transactions at other banks’ ATMs—three in metro centres and five in non-metro centres.
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, 2025,” the RBI said in a circular.
Currently, banks are allowed to charge Rs 21 per transaction once a customer exceeds the free transaction limit.
The RBI further said the revised charges will also apply to transactions at cash recycler machines, except for cash deposits.
