New ATM Withdrawal Charges : Upcoming month from 1 May 2025 withdrawing cash from ATMs will become more expensive for most of the banks across India. This hike comes after the approval of Reserve Bank of India for the proposal of banks to revise ATM charges. Banks was requested the atm charges hike due to day by day rising operational costs of same.
Finally now customers will needs to pay higher charges after they crosses their free withdrawal limit. Now we will see everything about the new rules about ATM withdrawal charges starting 1 May.
What’s Changing in ATM Charges from 1 May?
Currently most of the banks allow customers to make total 5 transaction per month at their own ATMs for both financial and non-financial transaction in metro cities. For another bank ATM transaction customers usually get three free transactions per month.
Currently if you crosses these free limits you will needs to pay around ₹21 per extra transaction. But, from 1 May 2025 banks will increase this charge to ₹24 for every transaction after the free limit. This change will be applicable to both savings and current accounts.
Key Points About New ATM Withdrawal Charges
- Free Transaction Limit: There will be no change in the free transaction limit, it will be same as earlier. All the customers can make 5 free transactions per month at own banks ATM and 3 free transactions at other banks ATM.
- Charges After Free Limit: As the old charges after limit over it was ₹21 per transaction. But now From 1 May 2025 it will increased to ₹24 per transaction. It means everyone needs to pay ₹3 extra for each extra transaction.
- After crossing the free transaction limit, for non-financial transactions like balance enquiry, mini statement, or any other transaction charges may also apply. But these charges can be differ from bank to bank.
Reasons for This Increase
The increase in ATM withdrawal charges from 1 May 2025, is mainly introduced due to the increased operational costs for maintaining ATM services. Banks are needs to invest the money for various expenses of ATM like ATM security, Technology upgradation, cash handling activities and also RBI guidelines for ATM.
Now We will see what changes are happened in the past for this increase in cost:
As the Security Measures it is very important to make secure the ATM and infrastructure, costing of it increasing day by day. Also Banks are investing for cybersecurity software and digital security.
Second important factor is Cash Handling and Replenishment. For this bank is paying major amount for loading cash, monitoring cash availability, and managing manpower, vehicles, and secure transportation.
Another important expenditure is administrative cost for following RBI Regulations and to follow Audit procedures. For making transparent and secure transactions, bank needs to maintain all the data and documents of each and every ATM.
Another major factor is the inflation of Our India which rises the cost of electricity, rent, wages, technology, etc. Everything is getting costlier day by day. Due to above reasons, banks are increasing the ATM transaction charges.
How To Avoid Extra Charges?
To avoid paying these extra ATM withdrawal charges you can follow above simple tips :
- Plan Your ATM Withdrawals Carefully, because 5 free transactions are sufficient to a common man. Try to manage your all transactions within the given limit.
- In the new world of 5G try to use free Digital Payments. Instead of Cash Withdrawals you can use UPI, debit cards, or mobile wallets.
- Instead of withdrawing smaller amounts number of times try to withdraw larger amounts for week or 15 days as per your needs.
- Mostly try to use your own banks ATMs, because you gets 2 extra free transaction at your own banks ATM. Always try to locate your banks ATM.