Ketaan Ram Kataria
New Delhi/Patna: ATM transactions beyond the free monthly limit will become more expensive for bank customers. The Reserve Bank of India (RBI) has approved an increase in the maximum fee banks can charge per ATM cash withdrawal from Rs 21 to Rs 23, effective after customers exhaust their permitted free transactions in a month.
As per RBI guidelines, customers are allowed five free transactions per month at their own bank’s ATMs and three at other banks in metro areas (five in non-metro areas). Once this limit is exceeded, the new Rs 23 per transaction fee will apply.
This move comes after a review of ATM interchange fees and aims to support the rising operational costs faced by banks and ATM operators. The last such hike was implemented in 2022 when the fee was raised from Rs 20 to Rs 21.
Banks have already begun notifying customers through SMS and emails about the upcoming change. Experts suggest that customers should plan their cash withdrawals wisely and make greater use of digital payment methods to avoid additional charges.
With the cost of cash transactions rising, this change is expected to push more people toward cashless alternatives while ensuring the sustainability of ATM operations across the country.
