ATM Cash Withdrawals To Cost ₹23 After Free Limit From May 1: RBI Update

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Fri, 04 Apr 2025 12:05:21 IST
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The Reserve Bank of India (RBI) has announced a key update that will affect millions of ATM users across the country. Effective May 1, 2025, banks can now charge up to ₹23 per transaction once customers exceed their monthly free withdrawal limit. This is a rise from the current charge of ₹21, as per the RBI's official communication on March 28.


Details of the New ATM Fee Structure

Under the new rule, customers will continue to get a set number of free transactions every month, depending on location and bank type:


  • 5 free transactions at ATMs of your own bank.
  • 3 free transactions at other banks' ATMs in metro cities.
  • 5 free transactions at other banks' ATMs in non-metro areas.

After these limits are crossed, a fee of ₹23 per financial transaction will be applicable.

These changes will also apply to cash recycler machines, except when used for depositing cash. The ATM interchange fees will continue to be set by the respective ATM networks. Currently, these fees stand at ₹17 per financial transaction and ₹6 per non-financial transaction.


How It Impacts Customers
Frequent ATM users who regularly exceed their free limits may now face higher monthly charges. This move is likely to encourage digital payments and push users to make fewer cash withdrawals.

To avoid these extra charges, users may start relying more on their home bank’s ATMs or opt for UPI and other digital payment options.

Other Banking Changes This April
Apart from the ATM fee revision, banks are also rolling out other changes:

  • Axis Bank is modifying the Vistara Credit Card benefits post its merger with Air India. These will apply to all renewals starting April 18.
  • SBI Card is revising its reward points programme, where selected cards will offer fewer reward points for specific transactions from March 31 to April 1.

If you're someone who makes frequent ATM withdrawals, this new RBI fee structure means it’s time to plan smarter. Stick to your free transaction limits, use your bank’s own ATM, or switch to digital methods to avoid extra charges from May 1.