RBI Increases ATM Transaction Charges. |
Mumbai: The Reserve Bank of India (RBI) has announced a significant change for ATM users, effective from May 1, 2025. Under the new guidelines, customers will be charged Rs 23 per transaction, up from the previous Rs 21. This revision applies to all banking services conducted through ATMs.
However, the RBI has maintained a provision for free transactions. Customers will be allowed five free transactions per month at their own bank’s ATMs. For customers using ATMs of other banks, three transactions per month will be free in metro cities.
Additionally, the RBI has clarified that these charges will also apply to cash recycler machines. This means that customers will be charged even when depositing cash, a move that has raised concerns among banking customers.
When Are You Exempt from Charges?
Transactions that fail due to technical glitches—such as hardware or software issues, lack of cash in the ATM, or incorrect PIN entries—will not attract charges. However, services like balance inquiries, cheque book requests, and fund transfers through ATMs will still incur fees as per the new guidelines.
Special Arrangements for Government Cheque Clearing
In another important development, the RBI has directed banks to make special arrangements for government cheque clearing on March 31, 2025, to mark the end of the fiscal year 2024-25. This arrangement is crucial for settling transactions related to both central and state governments.
The Cheque Truncation System (CTS) will be used for this purpose, ensuring efficient processing of government cheques. Typically, cheque clearing takes place on Mondays, but the RBI has specified that the same timeline will apply on March 31 as well, with an emphasis on government transactions.
