New ATM Transaction Charges

The new ATM transaction charges have been revised as per the latest RBI update on May 1st, 2025. That means customers will continue getting five free monthly transactions at their bank's ATMs. In metro cities, up to three free transactions are allowed at other banks' ATMs, while in non-metro areas, the limit is five.

After these ATM charges limits are crossed, banks can now charge up to ₹23 per transaction, increased from the earlier ₹21. These changes apply to both financial and non-financial ATM transactions.

Keep reading to learn in detail about the latest ATM transaction charges so that you stay well informed.

Table of Contents:

• ⇾ Know About ATM Transaction Charges
• ⇾ Reason for Sudden Change of ATM Charges
• ⇾ Free ATM Transactions & Withdrawal Limits
• ⇾ New ATM Withdrawal Charges Impact On Customers
• ⇾ Frequently Asked Questions

Know About ATM Transaction Charges

Generally, the ATM services include a free limit, which, when exhausted, are inclusive of charges. These charges apply to both financial transactions, like cash withdrawals, and non-financial ones, such as balance inquiries.

Typically, customers could make 5 free transactions per month at their own bank’s ATMs. The other bank ATM withdrawal limit is 3 free transactions in metro cities and five in non-metro areas.

Before the recent RBI update, banks were allowed to charge up to ₹21 per transaction beyond these free limits. This rule aimed to cover the operational costs of ATM services while ensuring fair usage.

Keep reading to know how this change in transaction charges came into effect.

Reason for Sudden Change of ATM Charges

As the ATM maintenance, infrastructure, and security costs increased, the Reserve Bank of India revised the ATM transaction charges. As a result, from May 1st, 2025, banks will charge up to ₹23 per transaction after the free limit.

Despite the increase, the free transaction limits remain unchanged, ensuring continued accessibility and convenience for most users.

Also read: ATM & Debit Cards

Free ATM Transactions & Withdrawal Limits

The ATM withdrawal charges before and after the RBI update are as follows:

The free withdrawal limit remains the same after the RBI update, that is, 5 transactions at own-bank ATMs & 3 transactions at ATMs of other banks in metro cities.

Here’s a quick overview of the maximum cash withdrawal limit per day for various bank debit cards in India:

New ATM Withdrawal Charges Impact On Customers

The new ATM withdrawal charges introduced by the RBI have a certain impact on its customers, such as:

• Customers will have to pay slightly higher charges for exceeding their free monthly transaction limits.
• Customers are encouraged to rely on digital payment methods such as UPI and other digital banking options as they are more cost-effective and convenient.
• Customers who frequently withdraw cash and exceed the free transaction limits may experience higher monthly expenses.