ATM withdrawals set to become costlier from May 1 as RBI allows banks to hike charges

Mumbai, Mar 28 (PTI) The Reserve Bank on Friday permitted banks to increase charges on ATM cash withdrawals beyond the free monthly usage by Rs 2 to Rs 23 per transaction from May 1.

Customers are eligible for five free transactions (inclusive of financial and non- financial transactions) every month from their own bank Automated Teller Machines (ATMs).

They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs -- three transactions in metro centres and five in non-metro centres.

"Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1, 2025," the RBI said in a circular.

Currently, banks are allowed to charge Rs 21 per transaction, after a customer exhausts the free transaction limit.

The RBI further said the instructions shall also apply, mutatis mutandis, to transactions done at cash recycler machines (other than for cash deposit transactions). PTI