RBI revises ATM transaction charges: From today, cash withdrawals to cost more

The Reserve Bank of India (RBI) has announced a hike in ATM transaction charges, effective from May 1, 2025. Customers exceeding the free monthly transaction limit will now be charged up to Rs 23 per transaction, an increase from the earlier cap of Rs 21.

Key Highlights

1. Free transactions limit:Charges beyond free limit
   • Own bank ATMs: 5 free transactions (financial + non-financial) per month.
   • Other bank ATMs:
     • Metro cities: 3 free transactions.
     • Non-metro cities: 5 free transactions.
2. Maximum Rs 23 per transaction, applicable to both financial (e.g., withdrawals, deposits) and non-financial (e.g., balance enquiry, PIN change) services.
3. This also applies to transactions at Cash Recycler Machines (CRMs), except for cash deposits.
4. The new rule is applicable to all commercial banks, including regional rural banks (RRBs), co-operative banks, authorised ATM network operators, card payment network operators, and white-label ATM operators.

ATM Interchange Fee

The interchange fee—a charge banks pay each other for ATM usage by non-customers—remains unchanged:

• Rs 19 per financial transaction.
• Rs 7 per non-financial transaction.

For instance, if you’re an HDFC customer withdrawing money from an SBI ATM in Kochi and exceed your free limit, HDFC may charge you the applicable Rs 23 fee for that transaction.