RBI hikes ATM withdrawal fees, in action from 1st May

RBI hikes ATM withdrawal fees, in action from

1^st May

‘Institutionalised Extraction’- CM Stalin

Customers are eligible for five free transactions (including financial and non- financial transactions) every month from their own bank’s Automated Teller Machines (ATMs).

The Reserve Bank allowed banks to increase charges on ATM cash withdrawals beyond the free monthly usage by ₹2 to ₹23 per transaction starting May 1^st.

Customers are also eligible for free transactions (including financial and non-financial transactions) from other bank ATMs—three transactions in metro centers and five in non-metro centers.

“After reaching the withdrawal limit, the customer may be charged a maximum fee of ₹23 per transaction. This will be in action from May 1^st, 2025, as per the RBI circular.

Currently, banks are allowed to charge ₹21 per transaction after a customer exhausts the free transaction limit.

Tamil Nadu Chief Minister M.K. Stalin slammed the center over the raise in charges for ATM withdrawal beyond the monthly free limit—from ₹21 to ₹23 per transaction—effective May 1^st.

CM Stalin criticised the Centre’s digitisation initiatives, calling them an “institutionalised extraction” from the poor.

Critics say the increase in withdrawal fees, though seemingly small, disproportionately impacts lower-income individuals who rely on ATMs for accessing government benefits and daily financial needs.