ATM Withdrawal cost: Starting on May 1, 2025, if you often take out cash from an ATM, you will be required to pay a higher transaction cost. The Reserve Bank of India-approved rise in ATM transaction fees would impact customers who exceed the free transaction limit.

The additional charges will take effect in May.

Following the use of their free monthly limit, customers will now be required to pay Rs 23 per transaction rather than the existing ₹21. The hike, which goes into effect on May 1, will have an impact on customers who often withdraw cash.

The limit for free transactions doesn’t change.

The quantity of free transactions will remain the same in spite of the increase. Customers may still use their bank’s ATMs to conduct five free transactions every month. Additionally, customers may use other banks’ ATMs for three free transactions in metro regions and five free transactions in non-metro areas each month.

Small bank clients can experience the pain.

Industry analysts predict that customers of smaller banks, who typically have fewer ATMS and are more reliant on the ATM networks of bigger banks, would be more impacted. After the free limit expires, these clients would have to pay more, and they might even think about changing banks in order to have greater access and pay less for transactions.

For what reason has the rate been raised?

The action comes after banks and white-label ATM operators have long called for the review, citing increased operational costs as the rationale. The National Payments Corporation of India’s suggested fee increase has now been approved by the RBI.

What is required of the client?

Customers shouldn’t worry too much if they just use the ATM occasionally—maybe once or twice a month. People who often withdraw cash are encouraged to utilize ATMs run by their banks and monitor digital payment methods in order to remain within the bounds of free transactions and avoid excessive costs.