ATM Fees Increased: Now Banks will charge more on ATM Cash Withdrawal, Check New Charges
Now you will have to pay more charges for withdrawing cash from ATM. The RBI has given permission to banks to charge more fees from customers. Now Banks will charge up to ₹23 per transaction starting May 1, 2025. This marks a ₹2 increase from the current fee of ₹21 per transaction. The RBI Circular is given below. You can read the changes and circular below.
According to the RBI’s circular, customers will continue to get a limited number of free transactions each month before the new charges apply. This means that customers can withdraw money from ATM for free for some transactions but then they will have to pay charges. Let’s have a look at how many free transactions customers will get.
- At Own Bank’s ATMs:
- Customers will be allowed five free transactions per month, including both financial transactions (cash withdrawals) and non-financial transactions (balance inquiries, mini statements, etc.).
- At Other Banks’ ATMs:
- Metro Cities: Three free transactions per month.
- Non-Metro Cities: Five free transactions per month.
Once customers exceed these limits, they will be charged ₹23 per withdrawal at any ATM, whether belonging to their own bank or another bank.
Charges for Cash Recycler Machines
The RBI also clarified that the revised charges would apply to cash withdrawals at Cash Recycler Machines (CRMs). However, this change does not affect cash deposits made through CRMs, which will continue to be free as per existing banking policies.
ATM Interchange Fee Structure
The RBI’s notification also included ATM interchange fees, which are charges levied when customers use another bank’s ATM. An ATM interchange fee is the amount a bank charges another bank when its customer uses an out-of-network ATM. This fee is usually passed on to customers in the form of withdrawal charges. As per the current structure, the fees is as follows:
- Financial transactions (such as cash withdrawals) will attract an interchange fee of ₹17 per transaction.
- Non-financial transactions (such as balance inquiries) will have an interchange fee of ₹6 per transaction.
These fees are determined by ATM network operators and contribute to the overall cost of ATM usage for banks and customers alike.
Who Will Be Affected?
The new policy will apply to all commercial banks, including:
- Public and private sector banks
- Regional rural banks (RRBs)
- Cooperative banks
- ATM network operators
- Card payment network providers
- White-label ATM operators (ATMs run by non-banking entities)
As of January 2025, India had a total of 1,30,902 on-site ATMs and cash recycler machines (CRMs) and 85,804 off-site ATMs. These machines will now fall under the revised transaction charge structure.
