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New ATM Charges 2025: Starting May 1, 2025, the Reserve Bank of India will increase ATM charges by Rs 2 per transaction after exceeding the free limit.
New ATM charges will be effective from May 01.
New ATM Charges 2025: Starting May 1, frequent ATM users should prepare to face higher charges. The Reserve Bank of India (RBI) has sanctioned an increase in ATM charge fee, if one is exceeding the free-limit. This fee includes the cost of owning and maintaining ATMs as well as offering services to other banks’ customers.
What Are Revised ATM Fees?
Under the new rules effective from May 1, 2025, customers will now pay an additional Rs 2 per transaction once they surpass their free withdrawal limit.
After exceeding the free monthly limit, customers will be charged Rs 23 per transaction at ATMs, instead of Rs 21.
Free ATM Transactions
– 5 free ATM transactions at own-bank ATMs every month
– 3 free transactions at other-bank ATMs in metro cities
– 5 free transactions at other-bank ATMs in non-metro cities
No Changes to Free Transaction Limits
The free transaction limits remain unchanged and apply to savings account holders across all banks in India. Previously, customers were charged Rs 21 per cash withdrawal after using up their free limit, a charge that was implemented in 2022.
Effect On Small Banks
These revised charges will only come into effect after customers exceed their free transaction limit, which is currently set at three free transactions per month for other banks’ ATMs in metro cities and five transactions in non-metro areas.
The hike in ATM fees is part of an RBI revision following recommendations from the National Payments Corporation of India (NPCI). White-label ATM operators and banks have been advocating for this increase due to rising operational costs.
The increase in transaction fees is expected to impact smaller banks more significantly, as they have fewer ATMs and rely on larger banks for their customers’ withdrawals. Consequently, this change will directly raise the cost of withdrawing cash and checking balances for customers using ATMs outside their home bank’s network.
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