New ATM withdrawal charge will be implemented from May 1
ATM Withdrawal Charges: ATM withdrawal charge is going to increase since May 1, 2025. After crossing the Monthly Free Transaction Limit, the charge charged on each transaction is being increased by Rs 2. After this new increase is implemented, after the end of the free limit, a charge of Rs 23 will be charged on each transaction. The Reserve Bank of India on Friday approved the implementation of the charge on the charge after the free limit was over. According to the rules of the Reserve Bank of India, any customer can do 5 free transactions (including financial and non-financial) from their bank’s ATM in a month.
Different free transaction limit is in different cities
On the other hand, if you are using another bank’s ATM, then you can do a maximum of 3 free transactions in Metro City and a maximum of 5 free transactions in non-Metro City. After crossing the limit of free transaction, you will have to pay a charge of Rs 23 on each transaction. Currently, after the free transaction limit is over, the bank can charge a maximum charge of Rs 21 on each transaction from its customers. Let us tell you that this decision will cost those bank customers who use ATMs several times in a month or use any other service.
Instructions can also be applied to cash recycler machines
The Reserve Bank of India said in a circular, “After free transactions, the customer can be charged a maximum of Rs 23 at each transaction. It will be effective from May 1, 2025.” RBI said that these instructions will also be applicable to transactions made on cash recycler machines along with changes when needed.
What is ATM Interchange Fee
Let us tell you that banks have to bear a variety of expenses on the use of ATMs, which are recovered from customers. When you withdraw money from another bank’s ATM, your bank pays for the service used to that other bank. Suppose you are SBI customers and you have withdrawn money from PNB’s ATM. In such a situation, SBI will pay PNB for his service. After the limit is free, SBI will charge you fees on each transaction. It is known as ATM Interchange Fee.
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