Your ATM Visit To Get Costlier More From May 1 - Check Latest Update Here

New Delhi: From May 1, the ATM withdrawal cost will be hiked by Rs 2 to ensure business sustainability. The Reserve Bank of India (RBI) sanctioned the hike, which is expected to increase the burden on customers. Once this hike is implemented, customers will have to pay Rs 23 per transaction at ATMs beyond the mandatory free transactions provided by their banks.

Currently, account holders can make up to five free withdrawals from their bank's ATM in metro cities (Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi). The limit for other banks' ATM has been kept at three transactions per month.

As per TOI, citing sources, the recent hike in ATM interchange fees is likely to affect customers, even though banks currently absorb the cost of free transactions.

As per RBI data, India had 2,16,706 ATMs in operation as of January 2025. On March 6, 2024, the National Financial Switch Steering Committee approved an increase in interchange fees — Rs 19 for financial and Rs 7 for non-financial domestic transactions. The NPCI has since sought the RBI’s approval to implement these changes.

NPCI informed its member banks about the revised fee structure on March 13, but the information has only recently come to light.

Since January 1, 2022, banks have been levying a charge of Rs 21 per ATM transaction once customers exceed their allotted free transaction limit.

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