Finance Khabar: From May 1, 2025, ATM withdrawals beyond the free monthly limit will become more expensive. The Reserve Bank of India (RBI) has allowed banks to increase the charge per transaction from ₹21 to ₹23. This decision comes as part of RBI’s efforts to address rising ATM maintenance and security costs.
What’s Changing?
Once customers exceed their monthly free ATM transaction limit, they will now have to pay ₹23 per withdrawal, up from the existing ₹21.
Free ATM Transactions Limit
From Own Bank ATMs: 5 free transactions per month (both financial & non-financial)
From Other Bank ATMs:
- 3 free transactions in metro cities
- 5 free transactions in non-metro cities
Note: These limits also apply to cash recycler machines (CRMs), excluding cash deposit transactions.
Reason Behind the Hike
According to the RBI, the increase is meant to offset the rising costs associated with operating ATM networks, including inflation and technological upgrades. The interchange fee — the fee paid by the card-issuing bank to the bank that owns the ATM — remains unchanged at ₹17 for financial and ₹6 for non-financial transactions.
Industry Reactions
Shikhar Aggarwal, Chairman, BLS E-Services:
“This revision may push frequent ATM users, especially in rural areas, to shift towards MicroATMs and Business Correspondents, which typically offer free transactions.”
Vishal Maru, Global Processing Head, FSS:
“The move opens a path for better ATM infrastructure, helping banks reinvest in secure and advanced technology to enhance customer experience.”
Who Is Affected?
The RBI circular is applicable to:
- Commercial banks
- Regional rural banks (RRBs)
- Co-operative banks
- White-label ATM operators
- Card payment networks
- ATM network operators
As of January 2025, India had over 1.3 lakh on-site ATMs and CRMs, and around 86,000 off-site ATMs, all of which will follow the new charge rule.
