ATM Charges Go Up: RBI Hikes Post-Limit Withdrawal Fee to ₹23, Balance Check to Cost ₹9
New Delhi, May 3:
In a move that could impact millions of bank customers across the country, the Reserve Bank of India (RBI) has revised ATM service charges, raising the cost of transactions that exceed the monthly free usage limit. Starting immediately, customers will have to pay up to ₹23 for each cash withdrawal and ₹9 for every balance enquiry once their free transactions are exhausted.
This revision comes as part of RBI’s ongoing efforts to ensure fair cost recovery for banks and ATM service providers, while also keeping customer interests in mind. The ₹23 fee marks a ₹2 increase from the previous cap of ₹21 for financial transactions, signaling a recalibration of charges in response to rising operational costs and infrastructure demands.
What Remains Free?
Despite the hike, customers will continue to enjoy a certain number of free ATM transactions each month. They are entitled to:
- Five free transactions per month (inclusive of both financial and non-financial) at their own bank’s ATMs.
- Three free transactions at other bank ATMs in metro cities, and
- Five free transactions at other bank ATMs in non-metro locations.
After crossing these limits, customers will now be charged ₹23 for every cash withdrawal and ₹9 for non-financial services, such as balance inquiries, mini-statements, and PIN changes.
Behind the Charges
The RBI also addressed the issue of ATM interchange fees—the amount banks pay each other for using their ATMs. While this fee is usually settled between the card-issuing bank and the ATM-operating bank, the RBI noted that networks are free to determine these charges. Currently, the interchange fee stands at ₹17 for financial transactions and ₹6 for non-financial ones.
Nationwide ATM Infrastructure
India’s ATM network remains one of the largest in the world. As of March 2025, the country boasted 2,55,885 ATMs, including cash recycler machines (CRMs) and white-label ATMs (WLAs) operated by non-bank entities.
The RBI said that the revision aims to strike a balance between the need to keep banking services affordable and the necessity of covering rising operational and maintenance costs faced by ATM operators. This includes expenses related to security, cash management, hardware upgrades, and network connectivity, particularly in rural and semi-urban areas.
What Customers Should Know
Banking experts suggest that customers should monitor their ATM usage more closely and plan withdrawals efficiently to avoid unnecessary fees. They also recommend adopting digital banking tools such as mobile apps and internet banking for balance checks and other non-financial services.
As the economy moves increasingly toward digital transactions, the role of ATMs continues to evolve. However, for many, especially in cash-dependent regions, ATMs remain a crucial access point for basic banking services. The latest revision by the RBI underscores the central bank’s challenge in balancing convenience, infrastructure costs, and consumer protection in a rapidly transforming financial landscape.
— Business & Economy Desk
