ATM Charges Increased: Here’s What Changes from May 1
The Reserve Bank of India (RBI) has announced an increase in ATM withdrawal charges, effective May 1, 2025. After using up your free monthly ATM transactions, you will now be charged ₹23 per withdrawal, up from the earlier fee of ₹21. This move applies to all savings account holders across all banks in India.
What Has Changed?
Starting May 1:
- ₹23 will be charged per ATM withdrawal after free limits are used
- Applies to both own-bank and other-bank ATMs
- Applicable to all scheduled commercial banks in India
- Applies only after free transaction limits are crossed
- Free Transactions Remain the Same
The RBI has not changed the number of free ATM transactions per month. The current rules still apply:
- 5 free ATM transactions per month at own-bank ATMs
- 3 free transactions at other-bank ATMs in metro cities
- 5 free transactions at other-bank ATMs in non-metro cities
These include both financial transactions (like cash withdrawals) and non-financial ones (such as balance enquiries or mini statement requests).
Comparison: Before and After May 1, 2025
ParticularsBefore May 1, 2025After May 1, 2025
- Fee after free transactions₹21 per transaction₹23 per transaction
- Free transactions per month5 (own bank), 3–5 (others)Same
Applicable toAll banksAll banks
Why Has RBI Increased ATM Charges?
The RBI allowed banks to hike ATM charges to cover the rising cost of ATM operations. Keeping ATMs running involves expenses such as security upgrades, software maintenance, and physical servicing. The increase helps banks continue offering safe, efficient ATM services across the country.
What Are ATM Withdrawal Charges?
ATM withdrawal charges are the fees banks charge when customers go beyond the free number of ATM uses in a month. These charges apply to:
- Cash withdrawals
- Balance enquiries
- Mini statement requests
- PIN changes, etc.
Once the monthly free limit is used up, every transaction costs ₹23.
How This Affects You
If you often withdraw cash, this change means higher monthly costs. To avoid extra fees:
- Plan your ATM visits wisely
- Use digital payment methods like UPI or net banking
- Avoid frequent small withdrawals
- Being mindful of your usage can help you save money and reduce banking charges.
With the new charges in effect from May 1, 2025, ATM users in India must now pay ₹23 per transaction after crossing the free limit. Although the number of free transactions hasn't changed, it's important to track your ATM use. Staying updated on these charges will help you manage your bank expenses smarter and avoid unnecessary fees.
