The initiative will affect customers nationwide, leading many to seek other means of banking in order to reduce costs.

RBI Unveils ATM Charge Increase Coming Into Force May 1, 2025 latest news: The Reserve Bank of India (RBI) has decided to raise fees on ATM withdrawals from May 1, 2025. From that date onwards, clients will be required to pay Rs 23 for a transaction once their free limit within a month has been utilized, an increment from the prevailing rate of Rs 21.

Even after the hike in fees, customers will still have a limited number of free ATM transactions per month. According to RBI guidelines:
- Five free transactions per month (both financial and non-financial) at their own bank's ATMs.
- Three free transactions per month at other banks' ATMs in metro cities.
- Five free transactions per month at other banks' ATMs in non-metro cities.

The RBI has rationalized the hike in the fee, stating an increase in operational expenses incurred in keeping ATMs functional, such as cash management, security, and maintenance. It was last revised in 2021, when the fee was hiked from Rs 20 to Rs 21.

For regular users of ATMs, the increase in fees highlights the importance of carefully planning withdrawals so that they are not charged more. The banks are nudging customers towards digital banking alternatives like UPI, online banking, and mobile wallets to minimise cash withdrawal dependency.

Government figures show that though the State Bank of India (SBI) has made good amounts of money from ATM withdrawal fees, various public sector banks (PSBs) have lost money on ATM operations due to the cost of running the facilities. The increase in this fee is meant to assist banks in recouping some of this expenditure.

The initiative will affect customers nationwide, leading many to seek other means of banking in order to reduce costs.

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