ATM Withdrawals to Cost More Beyond Free Limit from May 1, 2025, as per New RBI Rules

Starting May 1, 2025, bank customers could find themselves paying more for withdrawing cash from ATMs after exhausting their allotted free transactions. This change follows a revision in the fee structure announced by the Reserve Bank of India (RBI), aimed at updating the rules governing ATM usage.

The revised framework outlines new limits for free ATM transactions, introduces updated charges for exceeding those limits, and includes adjustments to interchange fees between banks. Under the updated guidelines, customers who go beyond the permitted number of free withdrawals may now be charged up to Rs 23 per transaction. This new cap on charges will be effective beginning May 1, 2025, with additional taxes applied wherever applicable.

These revised charges are not limited to standard ATMs alone. The RBI has clarified that similar provisions will extend to Cash Recycler Machines (CRMs), although the revised charges will not apply to CRM transactions involving only cash deposits.

The central bank regularly reviews and updates the rules surrounding ATM access, including the number of free transactions banks must offer and the maximum fees they can charge beyond that. These changes are intended to reflect operational cost shifts and promote transparency for customers across the banking sector.