ATM Charges Hike: Withdrawing money from ATM will be expensive from May 1, RBI has increased the charge
ATM Charges Hike: Big shock for those who withdraw cash from ATM! From 1 May 2025, every transaction after the free limit will be expensive. Know why the charge increased, who will be most affected, and how can you save money?
ATM Charges Hike: If you withdraw money from ATM frequently, then you should be ready to pay more money from May 1, 2025. Actually, the Reserve Bank of India (RBI) has approved the increase in ATM charges and this change will come into effect from May 1. Let us know why ATM fees are increasing, which customers will be affected by it and how much.
How much has the ATM fee increased?
Under the new rules, after exceeding the free transaction limit, now ₹ 23 will be charged on each ATM withdrawal, which is currently ₹ 21. This increased fee will be applicable from May 1, 2025. This means that the problems of customers who use ATM more are going to increase.
No change in free transaction limit
Customers will still get 5 free transactions every month from their bank’s ATM. The facility of 3 free transactions from ATMs of other banks in metro cities and 5 free transactions in non-metro cities will continue as before. However, you will have to pay an increased fee for more frequent ATM withdrawals.
More impact on small banks
According to experts, this increase in ATM charges will affect small banks more. Small banks have a limited number of ATMs and they depend on the network of big banks. In such a situation, their customers will have to pay additional fees after the free limit is over. In such a situation, customers who use ATM a lot can also consider changing their bank.
Why is ATM charge increasing?
Actually, white-label i.e. third party ATM operators and banks were demanding an increase in the charge for a long time. Their argument was that due to increased operating costs, there is now a loss in running ATMs. In such a situation, the National Payments Corporation of India (NPCI) recommended RBI to increase the charge, which has been approved by the central bank.
What should bank customers do?
If you use ATM very rarely or only once or twice a month, then you do not need to worry. But, if you use ATM more, then you can use your home bank’s ATM or choose the option of digital payment to stay within the free ATM transaction limit.
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