Starting May 1, 2025, customers using ATM banking services will have to pay higher charges for transactions beyond their free monthly limits. The Reserve Bank of India (RBI) has announced that the fee per ATM transaction will increase from ā¹21 to ā¹23, making cash withdrawals more expensive for users exceeding their free limits.New ATM Transaction Limits & Charges
Under the revised guidelines, customers will continue to receive a set number of free transactions at both their own bankās ATMs and other banksā ATMs before incurring charges.
Free Transactions at Own Bankās ATMs: Customers can avail five free transactions (including both financial and non-financial) per month.
Free Transactions at Other Banksā ATMs:
Metro cities: Three free transactions per month.
Non-metro areas: Five free transactions per month.
Charges Beyond Free Limit: After exhausting the free transactions, each additional ATM withdrawal will now cost ā¹23 per transaction instead of ā¹21.
Banks and ATM Revenue
The Central Government has reported that while the State Bank of India (SBI) is earning significant revenue from ATM transactions, several public sector banks (PSBs) are struggling to cover their ATM operational costs. Rising maintenance and cash-handling expenses have led to this revision in transaction charges.
Impact on Customers
With the increase in ATM withdrawal fees and limited free transactions, customers may look for alternative payment methods to avoid additional costs. This could lead to a higher adoption of digital payment modes, including UPI, mobile wallets, and internet banking, reducing dependency on physical cash transactions.
Customers are advised to check with their respective banks for further details on these changes and plan their transactions accordingly.