Banking alert: Your ATM withdrawals will soon cost more! RBI allows banks to raise ATM withdrawal fees by THIS amount from...

The Reserve Bank of India (RBI) has announced that banks can increase charges on ATM cash withdrawals beyond the free monthly limit. From May 1, 2025, customers will have to pay Rs 23 per transaction once they exceed their free withdrawals. This is an increase of Rs 2 from the current charge of Rs 21.

Free ATM Transactions Limit
Bank customers are eligible for a certain number of free transactions every month, which include both financial (cash withdrawals) and non-financial transactions (like balance inquiries or mini statements):

Own Bank ATMs: 5 free transactions per month.

Other Bank ATMs:

Metro cities: 3 free transactions per month.

Non-metro cities: 5 free transactions per month.

Increased Charges After Free Limit
Once a customer crosses the free transaction limit, they will now be charged Rs 23 per transaction instead of the earlier Rs 21. This applies to both cash withdrawals and other financial transactions.

Charges Also Apply to Cash Recycler Machines
The RBI clarified that these new charges will also apply to cash recycler machines (CRMs) when used for cash withdrawals. However, cash deposit transactions at CRMs will not be affected.

This decision allows banks to cover operational costs while still providing a reasonable number of free ATM transactions to customers.