RBI increases charges on ATM withdrawal beyond stipulated limit

The Reserve Bank has permitted banks to increase charges on ATM cash withdrawals beyond the free monthly usage by  2 rupees, raising the fee to 23 rupees per transaction from 1 May. Customers are entitled to five free transactions (inclusive of financial and non-financial transactions) per month from their own bank’s Automated Teller Machines (ATMs). 

They are also eligible for free transactions from other



banks’ ATMs- three transactions in metro centres and five in non-metro centres. “Beyond the free transactions, a customer may be charged a maximum fee of  23 rupees per transaction. This shall be effective from 1 May 2025, the RBI stated in a circular. Currently, banks are allowed to charge  21 rupees per transaction after a customer has exhausted the free transaction limit.