Nowadays, almost everyone uses ATMs to withdraw money. So, this is an important update for all such people. Starting from May 1, 2025, the rules related to ATM usage are set to change. The charges for ATM transactions are being revised. After the Reserve Bank of India (RBI) approved a proposal by the National Payments Corporation of India (NPCI), withdrawing money from another bank’s ATM will now become more expensive.
Currently, after a certain limit, withdrawing cash from an ATM of a different bank costs Rs 17 per transaction. But from May 1, 2025, this charge will increase to Rs 19. Similarly, the balance inquiry charge will go up from Rs 7 to Rs 9. Banks allow a limited number of free ATM transactions per month—5 in metro cities and 3 in non-metro areas. These increased charges will apply after the free transaction limit is exhausted.
Reason for the Increased ATM Charges
The hike in ATM charges is due to a request made by ATM network operators and white-label ATM companies for a rise in interchange fees. Their maintenance and operational costs have gone up compared to previous years. NPCI forwarded this request to the RBI, which has now approved it.
Banks that rely more on other banks’ ATM networks are likely to be impacted more by this change. Customers will now have to pay higher charges for withdrawing money or checking balances from non-home bank ATMs. So, those who frequently use ATMs should either stick to their home bank’s ATMs to avoid additional charges or shift to digital payment options.
The State Bank of India (SBI) had already revised its ATM transaction rules and charges, effective from February 1, 2025. However, according to the new RBI guidelines, the revised charges for cash withdrawals will be applicable for all banks starting May 1, 2025.