Swipe Smart or Pay the Price: RBI’s ATM Fee Hike Set to Hit Wallets from May 1!

Starting May 1, 2025, ATM users across India will face higher charges as the Reserve Bank of India (RBI) increases the fee for transactions beyond the free monthly limit. The new charge will be ₹23 per transaction, up from the current ₹21, impacting millions who rely on cash withdrawals for daily expenses.

 

Key Highlights:

 

Fee Hike Details: After exhausting your monthly free transaction quota, each additional ATM withdrawal will now cost ₹23. This applies to both financial and non-financial transactions at ATMs of all banks, including balance inquiries and mini statements.

 

Free Transaction Limits Unchanged: Customers can still make five free transactions per month at their own bank’s ATMs. At other banks’ ATMs, the limit remains three free transactions in metro cities and five in non-metro areas. Only transactions beyond these will incur the new charge.

 

Who’s Most Affected: The hike will hit frequent ATM users and customers of smaller banks hardest, as they often rely on other banks’ ATMs after exhausting their own bank’s free quota.

 

Why the Hike?: Banks and white-label ATM operators have pushed for this increase, citing rising costs for ATM maintenance, cash management, and security. The RBI approved the hike following recommendations from the National Payments Corporation of India (NPCI).

 

Tips to Save: To avoid extra charges, plan your withdrawals, use digital payment options like UPI, and try to stay within the free transaction limit each month.

 

This move aims to help banks manage growing operational costs while encouraging customers to adopt digital banking alternatives.

 

Sources: Economic Times, India Today, StudyCafe