ATM Withdrawal Charges: Now a days most of peoples are preferring to make payments through digital methods like Phonepe, Gpay or UPI which is quick and easy. For each and every payments like hotel tea bill, hiring a rickshaw, & all type of online payments are now common across India. However despite the growing use of digital transactions still cash is needed for many of the daily activities.
For withdrawing this cash most of the peoples no longer go to bank but prefer using ATM. If you are someone who often withdraws money from ATM then you need to understand the new latest rules. The Reserve Bank of India RBI has updated the rules for ATM transactions starting from 1st May 2025.
New ATM Withdrawal Rules from 1 May 2025
According to the new rules you can withdraw money from an ATM free of cost but only for limited number of times per month. Once you cross this new free transaction limit you will needs to pay a new fee for every extra transaction. As per Earlier rules customers had to pay ₹21 per extra transaction but from May 1, 2025 this fee is increased to ₹23 per extra transaction.
How Many Free Withdrawals Are Allowed?
- If you are living in metro cities like Delhi, Mumbai, Bengaluru, or Kolkata, you can make only 3 free cash withdrawals per month.
- If you live in non metro or smaller cities you are allowed 5 free cash withdrawals per month.
After finishing this free limit ₹23 will be deducted from your account for every additional withdrawal, as per the updated RBI rules.
Other Charges You Should Know
Not only cash withdrawals but also some other ATM activities may also be applicable for extra charges:
- If you check your bank account balance from an ATM of another bank you may be charged.
- Taking a mini statement from another banks ATM can also cost extra charges.
So that now it is important to keep track of your monthly ATM usage to avoid this unnecessary extra charges.
Why These Changes?
RBI Bank revises ATM rules from time to time to cover increasing operational costs which banks bear for maintaining ATM networks. This new move also will encourage customers to use digital payment methods more often and minimize cash usage.
Conclusion
From 1 May 2025 withdrawing cash from ATMs will become slightly more expensive if you exceeds free limit. Now all the customers should be careful and plan their withdrawals smartly. You all must want to use digital payment methods wherever possible and avoid frequent ATM visits to save money on extra charges.