New ATM Charges : Starting May 1, 2025, withdrawing cash from ATMs in India is about to get a bit heavier on your wallet. Thanks to a recent go-ahead from the Reserve Bank of India (RBI), banks will now hike the charges for ATM transactions beyond the free usage limit. So, if you’re someone who regularly visits the ATM for small cash withdrawals, it’s time to rethink that habit.
So, What’s Changing?
Currently, if you’re in a metro city, you get five free ATM transactions every month at your own bank’s ATMs, and three free transactions at other banks’ ATMs. After that limit is crossed, banks have been charging ₹21 for every additional withdrawal.
But come May 1, this fee will go up to ₹24 per transaction. That’s right – an extra ₹3 for every withdrawal after you’ve hit your limit. The new charges apply across the board — whether you hold a savings account or a current account.
While ₹3 might not seem like a big deal, for frequent ATM users, it can quickly add up over the month. With rising costs everywhere, even small expenses like this make a noticeable dent over time.
Why This Price Hike?
According to the banks, it all comes down to higher operating costs. Maintaining ATMs isn’t cheap — they need round-the-clock security, regular software updates, cash loading, and strict regulatory compliance. Banks have been nudging the RBI for a revision, citing inflation and the growing costs of running ATM infrastructure.
The RBI finally agreed, giving the banks a green light to increase charges in line with the growing cost of operations.
What Can You Do To Avoid These Charges?
Let’s be real — ₹24 for every extra transaction is not pocket change for many of us. Here are a few smart ways to avoid paying this fee:
- Plan your withdrawals: Try withdrawing cash just once or twice a month in larger amounts instead of making frequent smaller withdrawals.
- Stick to your own bank’s ATM: That way, you make the most of your 5 free transactions.
- Use digital payments: UPI, net banking, mobile wallets — you name it. Go cashless wherever possible.
- Track your usage: Keep an eye on your monthly ATM usage so you don’t unknowingly exceed the free limit.
Bottom Line
While the new charge of ₹24 per extra ATM transaction isn’t a deal-breaker, it’s definitely something to watch out for — especially for those who still rely heavily on cash. A little bit of planning can go a long way in keeping those extra deductions in check.
So, mark your calendar for May 1, 2025, and start rethinking how you manage your ATM visits. Because every swipe might soon cost you a little more than just time.
