ATM withdrawal norms revised from May 1

Bengaluru

Starting from May 1, 2025, new regulations will be implemented regarding ATM transaction charges. Under these rules, customers will be allowed a fixed number of free ATM transactions each month. Specifically, customers in metro areas will have three free transactions, while those outside metro areas will be permitted five free transactions.

Once these limits are exceeded, a fee of ₹23 will be charged for each additional transaction. The Reserve Bank of India (RBI) has revised the policy on ATM charges to reflect these changes. These updates will impact the limits on free transactions, the charges applicable for transactions beyond the free limit, and interchange fees across the banking system.

According to the new policy, customers can use their ATMs for a certain number of free transactions every month, after which they will have to pay a fee. The free transaction limits include both financial transactions, such as cash withdrawals and balance inquiries, and non-financial transactions, depending on the location. Beyond these limits, a charge of ₹23 per extra transaction will be applicable. These charges will apply for withdrawals and other services at ATMs and Cash Recycling Machines (CRMs).

However, it’s important to note that depositing money through CRMs does not incur these charges. Currently, only financial transactions at your bank’s ATM are counted, but using other banks’ ATMs counts both financial and non-financial transactions. This move by the RBI aims to ensure the sustainability of ATM operations, including maintenance, cash handling, and technological updates. It also provides relief to smaller banks and white-label ATM operators.