RBI allows banks to increase ATM withdrawal fees from 21 to 23 Rs per transaction outside free borders, starting on May 1, 2025.
Withdrawal of cash from ATMs to become more expensive because RBI approves boards
The Indian Reserve Bank (RBI) has announced that banks could increase the cash withdrawal fee beyond the free monthly limit. On May 1, 2025, customers will have to pay 23 rupees for transaction if they exceed their free removal. This is an increase in Rs 2 from the current running of 21 rupees.
FREE ATM RESTRUns
Bank clients are eligible for a certain number of free transactions each month, which include both financial (cash withdrawal) and non-financial transactions (such as balance requests or mini):
Own Bank ATMs: 5 free transactions per month.
Other Bank ATMs:
Subway Cities: 3 Free Month Operations.
Cities with no meter: 5 free transactions per month.
Increase payments after a free limit
Once the client crosses the free transaction limit, now they are charged 23 for transaction rather than previous Rs 21. This applies to both cash and other financial transactions.
Fees are also distributed to machines for reworking cash
RBI specified that these new fees will also be distributed to cash processing machines (CRMS) when used for cash withdrawal. However, deposits for cash in CRMS will not be affected.
This decision allows banks to cover operating costs, providing customers with a reasonable number of free ATM operations.
