The Reserve Bank of India had recently made changes in ATM transaction fees. These changes are coming into effect from May 1, 2025. Let us know here how much extra charge will be levied from withdrawing cash to checking balance after the free transaction limit.
Important changes are going to happen for bank customers from May 1, after which using ATM can be expensive. Yes, the Reserve Bank of India had announced an increase in the charge for withdrawing cash from ATM a few days ago. Which is now being implemented from 1st date 2025. If you also withdraw cash, deposit or check balance from ATM, then know about the new rules here. This is because after the first date of May, after crossing the free limit, extra charge may have to be paid on every transaction.
Earlier, from withdrawing cash to depositing, one had to visit banks. But, after the arrival of ATM service, our work has become very easy and now we have to visit the bank less to withdraw money. Many people go to ATMs every day to transact small amounts. But, after May 1, 2025, using ATMs for small transactions can be heavy on the pocket.
How much extra charge will have to be paid for withdrawing cash from ATM now?
The National Payments Corporation of India (NPCI) had proposed to increase the interchange fee to ATM network operators and white label ATM service providers. Which has been approved by the RBI i.e. Reserve Bank of India, which is being implemented from May 1. Let us know here how much extra charge will have to be paid after the free limit.
According to the RBI notification, now a charge of Rs 23 will have to be paid for withdrawing cash from ATM. However, this charge will not be applicable on the first or second transaction of the month, but on the fourth or more times. Let us tell you, right now this charge is Rs 21.
After how many transactions is the charge levied?
The free ATM transaction limit is different for metro cities and non-metro cities. According to the rules of the Reserve Bank, you can do 5 transactions every month for free from your bank’s ATM, i.e. if you have an account in SBI and you withdraw money from SBI ATM, then you can do 5 transactions every month for free.
On the other hand, if you withdraw cash from another bank’s ATM card, i.e. your account is in SBI but you are withdrawing money from BOB ATM, then you may have to pay money after three transactions. There is a catch here too. Yes, if you live in a metro city, then you can do only 3 transactions every month for free from another bank’s ATM. If you are in a non-metro city, then you can do five transactions from another bank’s ATM.
Will there be extra charge for checking bank balance?
Extra charge can be levied even for checking bank balance from ATM. This is because, checking bank balance is also counted as a complete transaction. Understand with an example, like you withdrew cash from ATM on 5th, 15th and 25th of the month. But, if you check your balance at the ATM on the 27th, this transaction will be counted and you may have to pay extra charges for this.
How to avoid extra charges of ATM?
To minimize the extra charges on every transaction, first start using your bank’s ATM.
You can also use digital banking to reduce the extra charges of ATM. Paying through UPI and mobile apps instead of paying cash at different places is also considered a good option.
Keep an eye on your monthly ATM transactions and if the limit is crossed, you can withdraw cash from the bank instead of ATM.
