The Reserve Bank of India (RBI) on Friday permitted banks to increase charges on ATM cash withdrawals beyond the free monthly usage limit by Rs 2, raising the fee to Rs 23 per transaction, effective May 1, 2025.
Currently, banks can charge Rs 21 per transaction after customers exhaust their free transaction quota. The revised charges will apply to withdrawals from both bank ATMs and cash recycler machines, excluding cash deposits, as per the RBI’s circular.
Under existing norms, customers are entitled to five free transactions per month—including both financial and non-financial transactions—at ATMs of their own bank. Additionally, they can avail three free transactions at ATMs of other banks in metro cities and five in non-metro areas.
“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 central bank stated.
The move marks the first revision in ATM transaction charges since 2021, when the fee was increased from Rs 20 to Rs 21. Banks are expected to implement the updated charges accordingly.