If you frequently withdraw cash or check your account balance at ATMs, this update is important for you. Starting May 1, 2025, ATM transaction charges are set to increase. The Reserve Bank of India (RBI) has approved a proposal from the National Payments Corporation of India (NPCI) to raise charges for using other banks’ ATMs.
The charge for cash withdrawals will rise from Rs 17 to Rs 19 per transaction, while balance inquiry charges will go up from Rs 6 to Rs 7 per transaction. These new charges will apply only after a customer exceeds the monthly free transaction limit — five free transactions in metro cities and three in non-metro areas.
The hike comes after ATM network operators and white-label ATM companies requested an increase in interchange fees, citing rising maintenance and operational costs. NPCI forwarded the proposal to the RBI, which has now given it the green light.
Impact on Customers and Banks
Customers using ATMs of banks other than their own will now have to pay more. Smaller banks that rely heavily on other banks’ ATM networks may face increased costs. These banks might also consider raising account maintenance fees. To avoid extra charges, customers are advised to prefer digital payments or use their own bank’s ATM whenever possible.
SBI Revised Its ATM Transaction Limits
State Bank of India (SBI) has already made changes to its ATM transaction limits and charges for its customers, which came into effect from February 1, 2025. However, as per RBI’s latest directive, starting May 1, 2025, customers will now have to pay higher charges for cash withdrawals.
According to government data, the total value of digital payments in India was Rs 952 lakh crore in FY14, which surged to Rs 3,658 lakh crore by FY23 — indicating a rapid shift toward a cashless economy.
