1 May 2025 : The Reserve Bank of India (RBI) has updated the framework for ATM charges, which will be effective on Thursday (May 1). The changes will affect free transaction limits, charges for additional transactions, and interchange fees in the country’s banking system.
According to the new rules, customers can use the ATM for a set number of transactions in a month, after which a fee will be charged. There will be three free transactions in metro areas and five in non-metro areas, and they will include both financial and non-financial transactions.
charged ₹23 for every additional transaction that they make using the ATM and the Cash Recycler Machines (CRMs). But the charges won’t be applicable for depositing cash through the CRMs.
While only the financial transactions will be counted when a customer uses their own bank’s ATM, both financial and non-financial transactions will be counted for other banks.
The reason for the RBI decision
The RBI’s decision comes as there is a need to ensure the financial viability of ATM operations in the country. As per data reported by Livemint, India had 2,16,706 ATMs as of January 2025, including 1,30,902 on-site and 85,804 off-site units.
These ATM operations have been impacted by several factors, including rising operational costs such as maintenance, cash handling, and technology upgrades. These factors have made it necessary to adjust the fee structure to support continued ATM availability, giving relief to smaller banks and white-label operators.
Summary:
From May 1, 2025, RBI’s new ATM rules allow five free transactions at own bank ATMs and three at others. After that, charges rise to ₹23 per transaction.