If you are also among those who often withdraw money from ATM, then this news is very important for you. Withdrawal of cash from ATM from 1 May 2025 is going to be a little expensive. The Reserve Bank of India (RBI) has allowed banks to increase the charge on ATM transactions. These new rates will come into effect from May 1 next year.
Come, let us understand in easy language that why ATM fees are increasing, how much impact will you have and what you can do to avoid it.
How much charge will you have to pay?
First of all, let’s talk about how much burden will increase on your pocket. According to the new RBI rules, if you cross the limit of free transaction given by your bank, then after that you on every cash withdrawn ₹ 23 Will have to pay a fee of. Right now this fee is ₹ 21. That is, every limit-cross transaction will take ₹ 2 more. Remember, this change 1 May 2025 Will be applicable from This simply means that people who withdraw money from ATM several times a month will now have to take a little care.
Has the free transaction limit also changed?
No, the good thing is that no change has been made in the number of free transactions. The rules will remain as before:
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From your bank’s ATM: You can withdraw money 5 times every month without any fee (it can include both financial and non-financial transactions, according to the bank rules).
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From another bank’s ATM:
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In metro cities (eg Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad): You can do free transactions 3 times a month.
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In non-Metro cities (small cities and towns): You can do free transactions 5 times a month.
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Just after crossing this limit, you will now have to give ₹ 23 per transaction instead of ₹ 21.
Can customers of small banks have more effects?
Experts believe that this increase in ATM fee may affect the customers of small banks. This is because small banks have their own ATM networks limited and their customers often use ATMs of other (large) banks. In such a situation, their free limit may end quickly and they may have to pay increased fees more often. It may be that some customers using too much ATM think about changing their banks for this reason.
Why are ATM charges increasing after all?
The question must be coming in your mind as to why these charges are being increased. Actually, banks and third-party ATM operators (called white-labeled ATM operators, who run only ATMs, are not banks) have been demanding to increase these charges for a long time. His argument was that the cost of running and maintaining ATM (eg fare, electricity, security, cash management etc.) is constantly increasing, causing them to harm them. In view of this, the National Payments Corporation of India (NPCI) had recommended to increase the charge from RBI, which has now been approved by RBI.
What should bank customers do now?
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No worry if you use less: If you go to ATM only once or twice a month, you do not have to worry too much. You will hardly cross the free limit.
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If you use more then pay attention: If you use ATM more, then try to use ATM of your own bank. With this, you will be able to take full advantage of 5 free transactions.
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Be digital, save money: The best way to withdraw cash Digital Payment Methods like UPI (Google Pay, PhonePe, Paytm etc.), Debit/Credit Card, Net Banking etc. maximum use. These are not only convenient, but will also save your non-essential expenses.
So, next time you go to ATM, then keep these things in mind so that your pocket does not get unnecessarily burdened!
Important news for those using the post ATM! Withdrawing cash will be expensive from 1 May 2025, know how much will increase and why? First appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
