ATM Withdrawals Beyond Free Limit To Cost Rs 23 From 1 May: RBI

The Reserve Bank of India (RBI) has announced a hike in ATM withdrawal charges starting 1 May 202, India Today reported.

With the hike, the customers will now have to pay Rs 23 per transaction beyond the free monthly limit.

This marks an increase of Rs 2 from the current charge of Rs 21 per transaction.

RBI guidelines clarify that customers will still get a set number of free ATM transactions each month.

According to the RBI guidelines, bank account holders will get:

- Five free transactions per month (both financial and non-financial) at ATMs of their own bank.

- Three free transactions per month at ATMs of other banks in metro cities.

Beyond these limits, each ATM transaction will now cost Rs 23.

Justifying the hike, RBI said that it is necessary to cover the rising operational costs of maintaining ATMs.

The last revision was in 2021, when fees were raised from Rs 20 to Rs 21.

Banks incur expenses for cash management, ATM maintenance, and security. The increase in fees aims to help banks recover some of these costs.

Frequent ATM users may now need to manage their ATM visits strategically to avoid additional charges.

Banks continue to promote digital payment methods like UPI, internet banking, and mobile wallets to cut reliance on cash.

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