ATM Charges Hiked! ₹23 Per Withdrawal After Free Limit from May 1, 2025

RBI has hiked the ATM charges for transaction after free limit, which effective from May 1, 2025. RBI stated, “Beyond the free transactions, a customer may be charged a maximum fee of ₹23 per transaction. This shall be effective from May 1, 2025.”

The ATM charges increase by Rs 2 for all transaction over monthly.  Since 2022, customers have been charged ₹21 for each ATM cash withdrawal after using up their free limit. But from today, May 1, 2025 the customer has charged Rs.23 for each ATM cash withdrawal after free limit.

How many Free charges Limit are there for ATM withdrawals?

Currently, the Central Bank RBI permit 5 Free monthly Withdrawal from ATMs of own Bank ATM

3 From other Bank ATM in Metro Cities

5 From Other Bank ATM in Mon-metro cities

There are no changes to Free Transaction Limits

Monthly free transactions include both financial (like cash withdrawals or deposits) and non-financial (like balance checks or PIN changes) at your own bank’s ATM or any other bank’s ATM.

Why RBI increase ATM Charges?

The RBI has increased the ATM withdrawalcharges to cover the rising costs. The cost of running ATMs—like maintenance, security upgrades and daily operations—has gone up. The higher charge will help banks manage these costs and continue providing safe and reliable ATM services across the country.  

Shikhar Aggarwal, Chairman, BLS E-Services told PTI, “While this hike may burden frequent ATM users, it presents a significant opportunity for Business Correspondents (BCs) and digital-first players.”

He also added, “With ATM withdrawals becoming costlier, customers — especially in rural and semi-urban areas — will increasingly turn to MicroATMs and BC networks, which remain fee-free for transactions.”

Conclusion:

The withdrawal charges has increased to Rs 23, but the free limits of monthly withdrawal remain same as before May 1, 2025. Knowing the latest ATM charge helps you plan better and avoid extra fees.

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