If you often withdraw cash from ATMs, this update is important for you. Starting May 1, 2025, using ATMs will become more expensive.
The Reserve Bank of India (RBI) has raised the charges for ATM usage. After using up your free transaction limit, you will have to pay higher fees for cash withdrawals and balance checks.
How much are the new charges?
Now, withdrawing cash from an ATM will cost Rs 19, which was earlier Rs 17.
Checking your account balance will cost Rs 7, up from Rs 6 earlier.
These new charges apply only after your free monthly limit is used.
What is the free transaction limit?
In metro cities, you can make 5 free ATM transactions every month.
In non-metro cities, this limit is 3 free transactions per month.
After crossing these limits, you will be charged for each ATM usage.
What other banking changes are coming?
1. Changes in savings account rules
Major banks like SBI, PNB, and Canara Bank are updating their minimum balance rules.
Different minimum balance amounts will apply for cities, towns, and villages.
If your balance is lower than the required amount, you may have to pay a penalty.
2. Fewer benefits on credit cards
SBI and IDFC First Bank are cutting back on benefits for their Vistara credit cards.
Ticket vouchers, renewal bonuses, and milestone rewards may be removed.
Axis Bank has also made similar changes from April 18.
3. What is the interchange fee?
When you use another bank’s ATM, your bank pays a fixed interchange fee to that bank.
RBI has now increased this fee.
This raises costs for banks, and they might pass these extra costs on to customers.
4. Small banks will be affected
Small banks that depend on big banks’ ATMs may now charge more to their customers.
This will increase the financial burden on customers of small banks.
What should customers do now?
Frequent ATM use will now lead to higher charges. So, try using UPI, net banking, or digital payments more often. This will help you avoid fees and make transactions easier.
