Big Alert: ATM Charges Hike Begins Today!

Significant changes in financial regulations have come into effect from the beginning of this month, with a major focus on the increase in ATM cash withdrawal charges. Starting May 1, banks have implemented higher charges for ATM transactions, prompting customers to exercise caution and avoid exceeding their free transaction limits to prevent extra charges.

The Reserve Bank of India (RBI) has approved the hike in ATM interchange charges effective from May 1. Interchange charges are levied between banks when a customer uses the ATM of a different bank. Additionally, the withdrawal fee beyond the free transaction limit has been raised from ₹21 to ₹23.

Currently, customers are allowed a limited number of free ATM transactions each month—three in metro cities and five in non-metro areas. Beyond this limit, customers will now be charged up to ₹23 per transaction. “If transactions exceed the free limit, a customer may be charged a maximum of ₹23 per transaction. This comes into effect from May 1, 2025,” the Reserve Bank of India announced.

RBI stated that the increase in charges is due to rising ATM maintenance and security expenses. Until now, banks charged ₹21 for transactions exceeding the free quota. From May 1, the charge has been revised to ₹23, with applicable taxes added on top.

Regarding the ATM interchange fee, the RBI clarified that it is determined by the ATM network. Currently, the interchange fee per transaction is ₹19 for financial transactions and ₹7 for non-financial transactions. The ATM interchange fee refers to the amount one bank pays another bank for providing ATM services to its customers.