The Reserve Bank of India (RBI) has announced new rules regarding ATM transaction charges. These changes will come into effect from May 1, 2025, and will make ATM withdrawals more expensive for customers.

The decision was made after banks requested a hike in charges due to the rising cost of providing ATM services. With this, customers will need to plan their ATM usage carefully to avoid paying extra.

Here are the major changes:

• – The interchange fee for financial transactions has been increased from Rs 15 to Rs 17.  
• – For non-financial transactions like balance inquiries, the fee is now Rs 6, up from Rs 5.  
• – Once the free transaction limit is crossed, customers will now be charged Rs 21 per transaction instead of Rs 20.

These changes will impact regular ATM users the most.

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Free transaction limits vary by location:

• – In metro cities, customers get five free transactions at their own bank’s ATMs and three at other banks’ ATMs.  
• – In non-metro cities, customers get five free transactions each at both own-bank and other-bank ATMs.

Beyond these free limits, charges will apply as per the new rules.  

Customers are advised to check with their banks about the specific limits and avoid unnecessary ATM visits. A single extra transaction could now cost more than before.

The RBI’s move is expected to help banks recover operational costs. However, for customers, especially those dependent on cash, this could mean higher monthly expenses.