The Reserve Bank of India (RBI) has approved a revised fee structure for ATM transactions that came into effect from May 1, 2025. As per the new norms, each cash withdrawal beyond the free monthly limit will now cost Rs 23, while a balance inquiry will be charged at Rs 9 per request.
The RBI cited rising costs of ATM infrastructure maintenance, cash logistics, and security enhancements as the rationale behind this hike. The revised charges are applicable to all domestic bank customers, across both on-site and off-site ATMs.
✅ Here’s What Has Changed:
-
Cash Withdrawal Charges:
From Rs 21 to Rs 23 per transaction beyond the monthly free limit. -
Balance Inquiry Charges:
Introduced at Rs 9 per inquiry, which was previously free in most cases. -
Free Limit Reminder:
-
5 free ATM transactions (financial + non-financial) at own bank ATMs.
-
3 free ATM transactions at other bank ATMs in metro cities.
-
5 free ATM transactions at other bank ATMs in non-metro cities.
-
These charges will reflect on monthly bank statements, and banks have been directed to communicate these changes to customers clearly through SMS, email, and digital channels.
Why This Matters:
With increasing digital adoption, ATM usage has seen a decline; however, for large parts of India, especially Tier 2 and Tier 3 towns, ATMs remain the backbone of cash-based transactions. The new charges may affect senior citizens, pensioners, and people in semi-urban areas who rely heavily on ATM services for day-to-day banking.
RBI’s Stand:
An official from the RBI stated that the revised charges aim to “balance the operational cost burden on banks with customer service accessibility.” Banks have also been advised to upgrade ATM infrastructure to ensure better service reliability.