ATM Charges Increase from May 1, 2025: Know How Much and Who Will be Affected:

Suspense Crime,Digital Desk:ATM Charges Hike: Those who have the habit of withdrawing cash from an ATM regularly, will have to spend extra from May 1, 2025. This is because the Reserve Bank of India (RBI) has given approval regarding the hike in ATM fees and the deadline for this is from May 1. Let us see the reasons behind these increases in the ATM fees, which customers will be affected and by how much.

How much has the ATM fee increased?

Commencing May 1, 2025, we will charge an increased fee of ₹ 23 for every ATM withdrawal after surpassing the free transaction limit. This amount has been raised from 21 currently levied. With this, it seems that the worries of those customers who use ATMs frequently are set to increase.

No change in free transaction limit

Customers will continue to receive the standard 5 transactions monthly from their bank’s ATM without any charge. The benefit of 3 free transactions from other bank’s ATMs in metro cities, and 5 free transactions-of in non-metro cities, will remain the same as before. But you will incur this fee if you withdraw cash from the ATM every time.

More impact on small banks

Independent ATMs are expected to have a greater impact on small banks. Small banks, which are wholly dependent on big banks' ATM networks, already operate at a loss and require more funds to support their ATMs. ATM customers of such banks will have to pay additional fees once they reach the prescribed free limit. Hence, frequent ATM customers might consider switching their banks.

Why is there an increase charge for using an ATM?

Third party ATM operators, also referred to as white label or just white label, kept pushing the charge for years. Administrators are systematized to recover funds paid as expenses because there are so-called losses in the systems of running ATMs. As a consequence, NPCI suggested charges – as such, NPCI with the direct permission of the central bank is known to recommend the RBI, later granting its assent.

What action is of concern is recommended bank customer?

You should not be unduly concerned if your ATM utilization is very low. If your concerns are more regular ATM withdrawals you can use your bank's ATM or use digital payment options so that you stay within these thresholds to avoid ATM transaction fees.