New Delhi:- The Reserve Bank of India (RBI) has announced an increase in ATM cash withdrawal charges, effective May 1, 2025. Customers exceeding their bank’s free transaction limits will now incur a fee of ₹23 per transaction, up from the previous ₹21.
Free Transaction Limits Remain Unchanged
The RBI’s guidelines continue to allow bank customers a certain number of free ATM transactions each month:
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Own Bank ATMs: Five free transactions (inclusive of both financial and non-financial) per month.
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Other Bank ATMs:
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Three free transactions in metro centers.
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Five free transactions in non-metro centers.
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Rationale Behind the Fee Hike
The decision to raise ATM withdrawal fees is attributed to increased operational costs associated with ATM maintenance and cash handling. The RBI aims to balance these costs while encouraging consumers to adopt digital banking methods, which are often more cost-effective and convenient.
Political Response
The fee increase has elicited criticism from political figures. Congress President Mallikarjun Kharge accused the government of turning banks into “collection agents” and expressed concern over the additional financial burden on citizens.
Customer Advisory
Bank customers are advised to be mindful of their ATM usage to avoid incurring additional charges. Utilizing digital payment methods and planning cash withdrawals to stay within the free transaction limits can help mitigate extra fees.
For detailed information on ATM withdrawal limits and transaction charges specific to your bank, please refer to official communications from your bank or visit their official website.
