The Reserve Bank of India (RBI) has announced an increase in ATM withdrawal charges for transactions beyond the free monthly limit. Starting May 1, 2025, customers will be required to pay ₹23 per transaction, up from the current ₹21.
According to existing regulations, bank customers are allowed five free transactions per month at their own bank’s ATMs. Additionally, they can make up to three free withdrawals at other bank ATMs in metro cities and up to five in non-metro locations. Any transaction beyond these limits will now attract a higher fee of ₹23 per withdrawal.
The revised fee structure will also be applicable to cash withdrawals made at cash recycler machines (CRMs), although deposits will continue to remain exempt. The ATM interchange fee, which is charged between banks for processing ATM transactions, remains unchanged. At present, banks pay ₹17 for financial transactions and ₹6 for non-financial transactions as interchange fees.
Shikhar Aggarwal, Chairman of BLS E-Services, noted that the hike reflects the increasing costs of cash-based transactions in the country. He pointed out that this change might place an additional burden on customers who frequently use ATMs but could also encourage a shift towards digital payment solutions and alternative transaction points such as MicroATMs and Business Correspondents (BCs), which remain free of charge.
The RBI’s directive applies to all commercial banks, regional rural banks (RRBs), cooperative banks, white-label ATM operators, and authorized ATM network and card payment operators.
As of January 2025, India had a total of 1,30,902 on-site ATMs and cash recycler machines, along with 85,804 off-site ATMs. With the rise in transaction costs, banking experts anticipate that more customers may turn to digital banking and cashless payment options to avoid additional fees.
