ATM charges hiked by ₹2 to ₹23 per withdrawal beyond free monthly usage from May 1

ATM prices from Might 1: The Reserve Bank of India (RBI) on Friday, March 28, permitted banks to extend prices on ATM money withdrawals past the free month-to-month utilization by ₹2 to ₹23 per transaction from Might 1, 2025.

Clients are eligible for 5 free month-to-month transactions (together with monetary and non-financial) from their state-run or personal financial institution’s Automated Teller Machines (ATMs). In response to RBI, they’re eligible without spending a dime transactions (together with monetary and non-financial) from different financial institution ATMs—three transactions in metro centres and 5 in non-metro centres.

Additionally Learn: Check new charges here: ATM withdrawals to become costlier from May 1; minimum balance, credit card rules to be affected

ATM prices from Might 1: What are the important thing adjustments?

“Past the free transactions, a buyer could also be charged a most charge of ₹23 per transaction. This shall be efficient from Might 1, 2025,” the RBI stated in a round. At present, banks can cost ₹21 per transaction after a buyer exhausts the free transaction restrict. The RBI additional stated the directions can even apply mutatis mutandis to transactions executed at money recycler machines (apart from for money deposit transactions).

The RBI has issued varied directions on the variety of free ATM transactions and the utmost prices that may be levied on a buyer past the obligatory free transactions occasionally. The RBI has additionally issued directions on the interchange charge construction for ATM transactions.

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The round additionally stated the ATM community will resolve the ATM interchange charge. In response to the round, the present interchange charge is ₹17 for monetary transactions and ₹6 for non-financial transactions in all centres.

Commenting on the proposed prices, Shikhar Aggarwal, Chairman of BLS E-Companies, instructed information company PTI that the RBI’s determination to extend ATM interchange charges underscores the rising value of money transactions in India.

“Whereas this hike could burden frequent ATM customers, it presents a big alternative for enterprise correspondents (BCs) and digital-first gamers. With ATM withdrawals changing into costlier, prospects — particularly in rural and semi-urban areas — will more and more flip to MicroATMs and BC networks, which stay fee-free for transactions,” he stated.

The RBI’s round applies to all industrial banks, together with regional rural banks, cooperative banks, authorised ATM community operators, card fee community operators, and white-label ATM operators. On the finish of January 2025, there have been 1,30,902 on-site ATMs and money recycler machines (CRMs) and 85,804 off-site.

Bank card advantages

Main banks, together with SBI and IDFC First Financial institution, are altering their co-branded Vistara bank cards. Advantages like ticket vouchers, renewal perks, and milestone rewards might be discontinued. Axis Financial institution will implement related adjustments beginning April 18, affecting its Vistara credit score cardholders.

What’s an ATM interchange charges?

A financial institution prices this charge for offering ATM providers to a different financial institution. This charge, often a hard and fast quantity per transaction, is usually handed on to prospects as a part of their banking prices. The rise in prices will apply nationwide and is anticipated to impression prospects, notably these from smaller banks.