The Reserve Bank of India (RBI) has announced a revision in ATM withdrawal charges, which will come into effect from May 1, 2025. As per the new rule, banks can now charge customers up to Rs 23 per transaction for withdrawals exceeding the monthly free limit. This is an increase from the previous fee of Rs 21 per transaction.
Why in the News?
The RBI has increased the ATM withdrawal fee from Rs 21 to Rs 23 per transaction for customers exceeding their free transaction limit. The change, announced on March 28, 2025, will take effect from May 1, 2025. This revision aims to compensate banks for the rising cost of maintaining ATM networks and cash replenishment services.
Revised Fee Structure for ATM Withdrawals
1. Free Transactions Per Month
Customers will continue to have a limited number of free ATM transactions every month:
- Five free transactions at their own bank’s ATMs.
- Three free transactions at other banks’ ATMs in metropolitan areas.
- Five free transactions at other banks’ ATMs in non-metropolitan areas.
2. Charges Beyond Free Transactions
- After exceeding the free transaction limit, customers will now be charged Rs 23 per withdrawal.
- Previously, this charge was Rs 21 per transaction.
3. Applicability to Cash Recycler Machines
- The new charges will also apply to transactions made at cash recycler machines (except for cash deposit transactions).
ATM Interchange Fee Details
- The interchange fee per transaction will continue to be determined by the respective ATM network.
- Currently, the interchange fee is:
Rs 17 per financial transaction
Rs 6 per non-financial transaction across all centers.
Impact on Customers
This fee revision means that customers exceeding their monthly free ATM withdrawal limit will now have to pay Rs 2 more per transaction than before. This is expected to impact those who frequently withdraw cash from ATMs, especially in urban areas.
SBI Card Revises Reward Programme
Alongside this development, SBI Card has also announced changes to its reward points programme. Effective March 31 – April 1, 2025, select credit cards will offer fewer reward points for specific transactions. This move is expected to impact customers who rely on reward points for benefits on their credit card spending.
Summary of the News in Tabular Form
| Aspect | Details |
|---|---|
| Why in News? | RBI increases ATM withdrawal charges to Rs 23 per transaction. |
| Effective From | May 1, 2025. |
| Previous Charge | Rs 21 per transaction. |
| New Charge | Rs 23 per transaction. |
| Free Transactions | – 5 at own bank’s ATMs – 3 at other banks’ ATMs (metro areas) – 5 at other banks’ ATMs (non-metro areas) |
| Interchange Fee | – Rs 17 per financial transaction – Rs 6 per non-financial transaction |
| Applicability | Also applies to cash recycler machines (except deposits). |
| SBI Card Update | SBI revises its reward points structure from March 31 – April 1, 2025. |
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