GUWAHATI: The Reserve Bank of India (RBI) has announced a hike in ATM withdrawal charges beyond the free monthly limit, which will be effective from May 1. Customers exceeding the permissible number of free transactions will now be charged ₹23 per transaction, up from the current ₹21.
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The revision applies to all financial transactions at ATMs once the user surpasses the allowed free usage. As per RBI norms, bank customers are entitled to five free transactions each month—including both financial and non-financial—at ATMs operated by their own bank.
Additionally, users can avail of three free transactions at ATMs of other banks in metro cities and five in non-metro areas.
The central bank has stated that this increase in withdrawal charges is intended to help banks offset the rising operational costs associated with ATM maintenance, cash replenishment, and security. The last adjustment to these charges was made in 2021, when the fee was raised from ₹20 to ₹21 per transaction.
The RBI also mentioned that the current decision reflects inflationary pressures and increasing expenses related to the ATM network infrastructure. Banks have been incurring considerable expenditure in managing these services, especially in rural and semi-urban areas where maintenance and logistics costs are comparatively higher.
