RBI Updates ATM Cash Withdrawal Charges: What You Need to Know

Starting this Thursday, banks can charge Rs 23 for cash withdrawals beyond the free monthly limit, up from the previous Rs 21. The Reserve Bank of India's revised instructions allow five free ATM transactions from own bank ATMs and limited free transactions from other bank ATMs.

The Reserve Bank of India's revised guidelines on ATM usage costs have been implemented, allowing banks to levy a charge of Rs 23 per cash withdrawal after a customer surpasses the monthly free transaction limit. Previously, the fee was capped at Rs 21 per transaction.

Customers can avail five free transactions, including both financial and non-financial, each month from their own bank ATMs. Additionally, customers are eligible for a limited number of free transactions from other banks' ATMs, with three available in metro areas and five in non-metro locations.

Per RBI's circular on the review of ATM fees, effective May 01, 2025, the charges apply to cash recycler machines as well, excluding cash deposits. ATM interchange fees remain determined by the network, currently standing at Rs 17 for financial transactions and Rs 6 for non-financial ones.