ATM usage cost up by Rs 2 to Rs 23/withdrawal after free monthly usage limit

New Delhi: The RBI's instructions on revised ATM usage cost have come into effect from Thursday under which banks can charge Rs 23 per cash withdrawal once a customer exhausts the free permissible limit in a month.

Earlier, banks were allowed to charge up to Rs 21 per such transaction.

Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank Automated Teller Machines (ATMs).

They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs -- three transactions in metro centres and five in non-metro centres.

On March 28, the Reserve Bank of India (RBI) had issued a circular on 'Usage of Automated Teller Machines / Cash Recycler Machines – Review of Interchange Fee and Customer Charges'.

"Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 01, 2025," the RBI's circular said.

The revised instructions also apply to transactions done at cash recycler machines (other than for cash deposit transactions).

The RBI has, from time to time, issued various instructions on the number of free ATM transactions and maximum charges that can be levied on a customer beyond the mandatory free transactions. Instructions have also been issued by the RBI on interchange fee structure for ATM transactions.

The circular also said the ATM interchange fee will be as decided by the ATM network.

The current interchange fee per transaction is Rs 17 for financial transactions and Rs 6 for non-financial transactions in all centres.

There were 2,55,885 banks ATMs, cash recycler machines (CRMs) and white label ATMs (WLAs) at end-March 2025.