ATM Charges Increased from May 1: RBI Approves Hike

From May 1, 2025, ATM withdrawal charges have increased after reaching the free transaction limit. The Reserve Bank of India (RBI) has approved the hike in interchange charges between banks. If a customer crosses the free limit, they will now be charged ₹23 instead of ₹21 per transaction.

Customers can do up to 3 free ATM transactions per month in metro cities, and 5 in non-metro areas. After this, each withdrawal will cost more. RBI stated that the reason for this hike is the increased maintenance and security costs for ATMs.

The interchange fee is the amount one bank pays to another when their ATM is used by someone else’s customer. Right now, this fee is ₹19 for financial transactions and ₹7 for non-financial ones. Customers should now be more careful with ATM usage to avoid extra charges and taxes.