Bhopal, Consumers using Automated Teller Machines (ATMs) will have to shell out more for their transactions starting today, May 1, 2025, as the revised ATM charges announced by the Reserve Bank of India (RBI) come into effect. The new rules stipulate a hike in the charges levied on customers for transactions exceeding the free monthly limit.
According to the RBI guidelines, after exhausting the free transaction quota, users will now be charged a maximum of ₹23 per transaction, a ₹2 increase from the previous rate of ₹21. This charge is applicable to both financial transactions, such as cash withdrawals, and non-financial transactions, including balance inquiries.
Furthermore, while the RBI notification does not explicitly mention a separate charge for balance checks at ₹9, some banks have revised their charges for non-financial transactions. Punjab National Bank, for instance, has stated that non-financial transactions beyond the free limit at other banks’ ATMs will now cost ₹11 (excluding GST), effective from May 9, 2025. It is crucial for customers to check with their respective banks for the specific charges applicable to balance inquiries.
The number of free ATM transactions per month remains the same. Customers are entitled to five free transactions at their own bank’s ATMs, which include both financial and non-financial transactions. Additionally, they can avail three free transactions at other banks’ ATMs in metro centers and five free transactions in non-metro centers.
These revised charges are applicable across all commercial banks, regional rural banks, cooperative banks, white-label ATM operators, and authorized ATM and card payment network operators. The increase in charges aims to help banks offset the rising costs associated with maintaining and operating the ATM infrastructure. The interchange fee, which banks pay to each other when their customers use other banks’ ATMs, has also been increased by the RBI to ₹19 for financial transactions and ₹7 for non-financial transactions.
Financial experts advise customers to be mindful of their ATM usage to avoid incurring these additional charges. Strategies such as planning withdrawals, utilizing digital payment methods like UPI, and prioritizing ATMs of their own bank, especially in metro cities, can help minimize these costs. Banks are also encouraging customers to adopt digital banking channels for their routine transactions.
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