The Reserve Bank of Indian (RBI) has announced that today, from May 1, customers will be charged a maximum of Rs 23 per transaction for ATM banking services. Earlier, the amount was fixed at Rs 21 per transaction. The RBI’s RBI followed the revised structure for ATM transaction fees that it will allow banks to increase ATM withdrawal fee for more transactions than the free use limit. “Beyond free transactions, a customer can be charged a maximum fee of Rs 23 per transaction. It will be effective from May 1, 2025,” read the RBI notice.
The new rule is applicable to all commercial banks including regional rural banks (RRBs), cooperative banks, authorized ATM network operators, card payment network operators and white-labeled ATM operators.
From May 1, the customers will be entitled to five free transactions (both financial and non-financial) every month from their own bank ATMs, and the other three from other banks in the metro cities. In non-Metro cities, apart from five free ATM transactions in your own bank, you get another five transactions in other banks, according to the RBI guidelines.
What if you are more than the free limit?
If customers are higher than their monthly fee transaction limit, banks are allowed to charge a maximum of Rs 23 per transaction. This cap applies to both financial (money withdrawal, deposits, etc.) and non-financial (check balance, change of pin, etc.). According to RBI, these fees also apply to cash recycling machines (CRMs), except that when you are depositing cash.
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“Beyond the free transactions, a customer can be charged a maximum fee of Rs 23 per transaction. It will be effective from May 1, 2025. Apply, if any, if any, will be payable additional.
ATM Interchange Fee
The RBI said that the ATM interchange fee will be fixed by the ATM network. Currently, per transaction interchange fee is Rs 19 for financial transactions and Rs 7 for non-financial transactions in all centers.
An ATM interchange fee is one fee that one pays another to offer ATM services to a bank customers. For example, if you are an HDFC bank customer and use SBI ATMs to withdraw money and reside in Delhi, HDFC Bank will charge you the fourth transaction in a month as HDFC Bank customer at SBI ATM.
