ATM withdrawal charges have increased from today, May 1, following a new directive by the Reserve Bank of India (RBI). Customers will now have to pay up to Rs 23 per transaction once they exceed the free monthly limit of ATM usage. This marks a hike from the previous cap of Rs 21. The revised framework applies to all commercial banks, regional rural banks (RRBs), co-operative banks, authorised ATM network operators, card payment network operators, and white-label ATM operators.
As per the RBI’s guidelines, bank customers in metro cities will continue to get five free ATM transactions each month from their own bank, along with three additional free transactions from other banks. For those living in non-metro areas, the rule remains slightly more relaxed, allowing five free transactions at own-bank ATMs and five at ATMs of other banks. Once the free transaction limit is exhausted, any additional withdrawal, balance inquiry, or other non-financial ATM activity will attract a charge of Rs 23 per transaction, excluding applicable taxes. These charges will also apply to transactions carried out at Cash Recycler Machines (CRMs), except for cash deposits.
In its official statement, the RBI clarified that this move is aimed at allowing banks to recover rising operating costs associated with ATM services. Additionally, the ATM interchange fee—what one bank pays to another when its customer uses the latter’s ATM—remains unchanged at Rs 19 for financial and Rs 7 for non-financial transactions. This interchange structure helps determine how many free ATM uses customers are granted each month.
For instance, if an HDFC Bank customer uses an SBI ATM in Delhi and exceeds the permitted free transactions, HDFC Bank may charge the user Rs 23 for each additional use. These new charges are now in force from May 1, 2025.