ATM Withdrawal Fees: Understanding the New Rules and Costs in 2025
The Reserve Bank of India (RBI) is updating the rules for using ATMs in 2025. These changes will affect how you take out money and use ATM services. The new rules start on May 1, 2025, so it’s important to understand them to avoid extra charges.
Key Changes to ATM Usage in 2025
The new rules keep the same number of free ATM transactions each month. However, the fees for using ATMs more than the free limit have changed. Banks can now charge up to ₹23 for each extra ATM transaction after you use your free ones. This fee applies to both taking out cash and other services like checking your balance, getting mini-statements, or changing your PIN.
Free ATM Transaction Limits Explained
If you use your own bank’s ATM, you get five free transactions each month. If you use ATMs from other banks in big cities (metros), you get three free transactions. In smaller towns (non-metros), you get five free transactions at other banks’ ATMs. These limits count both times you take out money and times you use other ATM services. The new rules also apply to Cash Recycler Machines, except when you are putting money in.
Why the RBI Introduced New ATM Rules
The RBI is making these changes to help banks with the rising costs of keeping ATMs running. These costs include maintenance, security, handling cash, and upgrading the ATM network.
Banks say that running ATM networks has become much more expensive. The new fees will help keep the system working well and make sure people can still easily use ATMs.
What the New ATM Rules Mean for You
If you use ATMs a lot, especially ATMs from other banks, it’s now very important to keep track of how many times you use them each month. Going over the free limit means you’ll have to pay extra, which can add up.
To avoid extra charges, plan when you need to take out cash. Try using digital payments and online banking more often to rely less on ATMs. Also, check if your bank has special accounts that give you more free ATM transactions each month. This can be helpful if you often need to take out cash.
Source: ATM New Rules 2025: Withdrawals to Cost More After Free Limit
