RBI Permits Banks to Increase ATM Cash Withdrawal Charges

The Reserve Bank of India has authorized banks to increase charges on ATM cash withdrawals beyond the free monthly limit from Rs 21 to Rs 23 per transaction, starting May 1, 2025. Customers have five free transactions per month from their own banks and a limited number on other banks' ATMs.

The Reserve Bank of India has announced that from May 1, 2025, banks will be allowed to increase charges on ATM cash withdrawals beyond the free monthly limit from Rs 21 to Rs 23 per transaction.

Customers will continue to receive five free transactions, including both financial and non-financial transactions, from their own bank's ATMs each month. Additionally, they will be eligible for three free transactions at ATMs of other banks in metro centers and five in non-metro centers.

The new guidelines will also apply to transactions conducted at cash recycler machines, as per a circular issued by the RBI.

(With inputs from agencies.)