On Friday, March 28, 2025, the Reserve Bank of India (RBI) made a significant announcement, giving banks the green light to hike fees for ATM cash withdrawals by ₹2, increasing the charge from ₹21 to ₹23 per transaction. This change kicks in on May 1, 2025, and applies only after customers exhaust their allotted free monthly transactions.
Here’s how it works: if you use your bank’s ATMs, you’re entitled to five free monthly transactions. These can include pulling out cash or checking your balance—any financial or non-financial activity. If you’re at another bank’s ATM, the deal’s different: three free transactions in big metro cities and five in smaller, non-metro areas, covering the same mix of services.
“After you’ve used up these freebies, banks can charge a maximum of ₹23 per transaction starting May 1, 2025,” the RBI explained in its official circular. For comparison, the current fee for extra transactions is ₹21, which is a modest bump. The idea is to keep banking affordable while letting banks cover their costs.
The RBI didn’t stop there. It also clarified that these rules extend to cash recycler machines, those handy ATMs that let you deposit and withdraw money. However, there’s a carve-out: cash deposits at these machines won’t fall under this fee structure. The exact limits and charges apply; otherwise, they are adjusted to fit the tech.