RBI Hikes ATM Transaction Charges Effective May 1, 2025

The Reserve Bank of India (RBI) has introduced revised ATM transaction charges, which will come into effect from May 1, 2025. These updates will make cash withdrawals and other ATM-related services slightly more expensive for customers across the country.

The revision comes following requests from banks seeking to increase fees to offset rising ATM maintenance and operational costs. As a result, customers are now encouraged to be more strategic in their use of ATMs to avoid incurring additional charges.

Key Changes in ATM Fees:

• Interchange fee for financial transactions (like cash withdrawals) has been raised from Rs 15 to Rs 17.
• Non-financial transactions (such as balance checks) will now cost Rs 6, up from the previous Rs 5.
• After exhausting the free transaction limit, each extra transaction will be charged at Rs 21, an increase from Rs 20.

These changes are expected to impact frequent ATM users the most, especially those relying heavily on cash.

Free Transaction Limits:

• In metro cities, customers are entitled to five free ATM transactions at their own bank’s ATMs and three free transactions at ATMs of other banks.
• In non-metro areas, customers enjoy five free transactions at both their own bank’s and other banks’ ATMs.

Once these free limits are crossed, the newly revised charges will apply.

What Customers Should Do:

Users are advised to stay informed about their bank’s specific ATM usage policies and keep track of their monthly transactions to avoid unexpected charges. With higher fees now in place, even one additional transaction can lead to extra costs.

While the RBI’s move is aimed at helping banks recover their service costs, it could lead to increased expenses for customers, particularly for those who rely on cash for day-to-day expenses.