ATM withdrawals to get costlier from May 2025: Transaction limits, charges explained

Starting 1 May 2025, withdrawing cash from ATMs will become more expensive for bank customers across India. The Reserve Bank of India (RBI) has increased ATM interchange fees, leading to higher charges for transactions exceeding the free monthly limits, as per the DD report​

An ATM interchange fee is the amount one bank pays another when a customer uses an ATM outside their home bank's network. These fees are often passed on to customers once they surpass their allotted free transactions.

However, banks are required to provide a minimum number of free ATM transactions to their savings account holders. Customers can avail at least five free financial transactions per month at their own bank’s ATMs, regardless of location, with unlimited free non-cash transactions.

For transactions at other banks' ATMs, the free limit varies by location. In metro cities like Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi, account holders get three free transactions per month, including both financial and non-financial transactions. In non-metro areas, banks must offer at least five free transactions per month at other banks’ ATMs.

According to reports, the revised charges are as follows:​

Cash withdrawal fee: Increased from ₹17 to ₹19 per transaction.​

Balance inquiry fee: Raised from ₹6 to ₹7 per transaction, as per DD news report.

When customers of banks visit other bank's ATM, they might experience higher costs when using other ATMs above prescribed limits.

With the fee hike happening in May month, frequent ATM users can consider other digital payment methods to avoid additional charges. Alternatively, limiting cash withdrawals to one's home bank's ATMs within the free transaction limits can help mitigate extra expenses. Also, failed ATM transactions due to technical issues will not be charged or counted as free transactions, as per RBI’s August 2019 circular.

Point to note

To ensure secure ATM transactions, customers should maintain privacy while using the kiosk and never share their card or PIN. They must avoid easily guessable PINs, register their mobile numbers for transaction alerts, and report unauthorized transactions immediately. Additionally, they should stay vigilant for suspicious activities or devices at ATMs and never disclose card details to anyone.