ATM Charges Set to Rise: The Reserve Bank of India (RBI) has decided to increase ATM withdrawal charges. Starting from May 1, 2025, new charges will apply to ATM transactions. Users who withdraw money from ATMs will face higher costs.

ATM Charges Set to Rise:
Increased Fees for Using Other Bank ATMs
RBI has allowed banks to raise interchange fees for ATM transactions. If you withdraw money from an ATM not belonging to your home bank or check your balance at such ATMs, the charges will rise. Previously, withdrawing money from an ATM of a different bank cost ₹17. This fee will increase to ₹19. The fee for balance checks at ATMs of other banks will rise from ₹6 to ₹7. These fees will apply to transactions made through ATMs that do not belong to your home bank.

Free Transactions Limit for ATM Withdrawals

Each bank allows a specific number of free transactions per month. Once you exceed this limit, you will incur charges. In metro cities, banks allow 5 free transactions at other banks’ ATMs. In non-metro cities, the limit is 3 free transactions. After exceeding this free transaction limit, any additional transactions will result in charges.

Charges for Other Bank ATM Services

The National Payments Corporation of India (NPCI) proposed the increase in ATM charges and RBI has approved it. SBI ATMs will not charge fees for balance inquiries or mini statements.But if you use an ATM of another bank, each transaction will cost ₹10 plus GST. This applies to both balance inquiries and mini statements. Users will need to rely on their home bank’s ATMs for these services to avoid extra charges.

Penalty for Insufficient Funds

If your ATM transaction fails due to insufficient funds in your account, the penalty of ₹20 plus GST will remain unchanged. This penalty applies when there are not enough funds to complete a transaction. Ensure your account has sufficient funds before attempting any ATM transaction to avoid unnecessary penalties.

Impact on Frequent ATM Users

Regular ATM users will see higher overall costs due to this change. Users who often withdraw money from ATMs of other banks or check their balance frequently will experience the increased charges. The higher fees will make users more aware of the costs involved in using ATM services outside their home bank’s network.

Why Does the Fee Increase?

RBI increased the interchange fees to cover the costs of providing ATM services. ATM operators and banks face expenses such as maintenance, infrastructure and technology upgrades. These costs are passed on to customers through the fee increase. The fee hike also aims to create a more sustainable model for the ATM network in India.

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