The Reserve Bank of India (RBI) announced on March 28 that the fee for using ATMs will be increased from Rs 21 to Rs 23 per transaction. This new charge will be applicable from May 1, 2025. The fee will be charged only when you exceed the free transaction limit.
Free Transaction Limit–
- You can make 5 free transactions per month from your own bank’s ATM. This includes withdrawing cash, checking your balance, getting a mini statement, or changing your PIN.
- You can also make free transactions at other bank ATMs:
- In metro cities (like Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad), you get 3 free transactions per month.
- In non-metro cities, you get 5 free transactions per month.
- Once you exceed the free limit, you will be charged Rs 23 per transaction.
What is ATM Interchange Fee?
An ATM interchange fee is a charge that one bank pays to another when their customer uses the other bank’s ATM. The amount of this fee will be decided by the ATM network.
Why has the fee increased?
RBI said that the fee has been increased to cover rising costs related to maintaining and operating ATMs. Maintaining cash and keeping ATMs running smoothly has become more expensive for banks.
How to Avoid Charges:
To avoid paying extra charges, you can use digital banking methods like UPI, mobile banking, or net banking for most transactions. These methods are usually free and convenient.
he Reserve Bank of India (RBI) announced on March 28 that the fee for using ATMs will be increased from Rs 21 to Rs 23 per transaction. This new charge will be applicable from May 1, 2025. The fee will be charged only when you exceed the free transaction limit.
Revised ATM Charges Table
| Transaction Type | Previous Charges | Revised Charges (from May 1, 2025) |
|---|---|---|
| Transactions at Own Bank ATM (Free Limit) | 5 per month | 5 per month |
| Transactions at Other Bank ATMs (Metro Cities) | 3 per month | 3 per month |
| Transactions at Other Bank ATMs (Non-Metro) | 5 per month | 5 per month |
| Charge Beyond Free Limit | Rs 21 per transaction | Rs 23 per transaction |
| ATM Interchange Fee | Decided by ATM Network | Decided by ATM Network |
What is ATM Interchange Fee?
An ATM interchange fee is a charge that one bank pays to another when a customer uses an ATM that does not belong to their own bank. The amount of this fee is decided by the ATM network.
Why Has the Fee Increased?
The RBI stated that the increase in ATM charges is due to rising costs related to maintaining and operating ATMs. This includes cash handling, security, and technical maintenance expenses.
Tips to Avoid Charges:
- Plan your withdrawals to stay within the free limit.
- Use digital payment methods like UPI, mobile banking, or net banking for routine transactions.
- Check your balance online rather than at the ATM to save free transactions.
MCQ (Multiple Choice Questions)
- From when will the revised ATM fee of Rs 23 per transaction be applicable?
- A) April 1, 2025
- B) May 1, 2025
- C) June 1, 2025
- D) July 1, 2025
- Answer: B) May 1, 2025
- How many free transactions are allowed per month at your own bank’s ATM?
- A) 3
- B) 4
- C) 5
- D) 6
- Answer: C) 5
- What is the revised charge for transactions beyond the free limit?
- A) Rs 20
- B) Rs 21
- C) Rs 22
- D) Rs 23
- Answer: D) Rs 23
- What is the number of free transactions allowed at other bank ATMs in metro cities?
- A) 2
- B) 3
- C) 4
- D) 5
- Answer: B) 3
- Who decides the ATM interchange fee?
- A) Reserve Bank of India
- B) ATM Network
- C) Individual Banks
- D) Government of India
- Answer: B) ATM Network