ATM Fee
RBI hikes cap on ATM cash withdrawal fee to INR 23/transaction from May 1
This story was originally published at 18:21 IST on 28 March 2025
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--RBI hikes cap on ATM cash withdrawal fee to INR 23/transaction from May 1
--RBI: ATM interchange fee to now be decided by ATM network
MUMBAI – The Reserve Bank of India has notified an increase in the fee that banks can charge customers on withdrawal of cash from automated teller machines to INR 23 per transaction from INR 21 per transaction, beyond the free monthly limit. The increase in cash withdrawal fee will come into effect from May 1. The RBI has also decided to let ATM networks determine the interchange fee, the notification said.
Customers can make five free transactions every month at ATMs operated by their bank and a further three free transactions at ATMs of other banks. The number for the latter rises to five for non-metro cities. Once the free transactions are exhausted, customers can be charged a maximum of INR 21 per transaction, plus any applicable taxes. Interchange fees for banks, meanwhile, stand at INR 17 for financial transactions and INR 6 for non-financial ones.
"The RBI had, from time to time, issued various instructions on the number of free ATM transactions and maximum charges that can be levied on a customer beyond the mandatory free transactions," the notification said. In FY24, a total of INR 32.59 trillion was withdrawn from ATMs, as per RBI data. For the first 10 months of FY25, the figure stood at INR 25.64 trillion.
State Bank of India is the only public sector bank that is not losing money on cash withdrawals made from ATMs, according to data shared by the Ministry of Finance with the Lok Sabha earlier this week. End
Reported by Vaishali Tyagi
Edited by Ashish Shirke
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