ATM Withdrawal Charges 2026 : Updated RBI Rules, Free Limit & Fees Explained

The Reserve Bank of India (RBI) has revised ATM withdrawal charges, effective from May 1, 2025. After exhausting the free monthly limit, customers will now have to pay ₹23 per transaction at ATMs. 

Key Highlights:

• Charges: ₹23 will be charged per cash withdrawal after the free limit.
• Own-Bank: 5 free ATM transactions at own-bank ATMs every month.
• Metro: 3 free transactions at other-bank ATMs in metro cities.
• Non-Metro: 5 free transactions at other-bank ATMs in non-metro cities.
• Unchanged: No changes to free transaction limits.
• Applicability: Applicable to savings account holders across all banks in India.

What are ATM Withdrawal Charges?

ATM withdrawal charges refer to the fees banks levy when customers use an Automated Teller Machine (ATM) beyond a specified number of free transactions in a month. These charges apply to cash withdrawals, balance inquiries, and other ATM services once the free limit is exhausted. Here are some important terms and their meanings you should know: 

• ATM withdrawal charges: Fee charged per cash withdrawal after free transactions
• Free ATM transactions limit: Number of free ATM transactions allowed per month
• Applicability: Applies to transactions at own-bank and other-bank ATMs

New ATM Charges from May 1, 2025

Starting May 1, 2025, the following new charges will apply:

• ₹23 per cash withdrawal after the free transaction limit
• Charges are applicable at both own-bank and other-bank ATMs
• Applicable to savings account holders across all banks in India

These changes are introduced to reflect increased costs in maintaining ATM infrastructure and providing secure services.

ATM Withdrawal Charges Before May 1, 2025

Customers were charged ₹21 per cash withdrawal after exhausting their free limit. This charge was implemented in 2022. 

Free ATM Withdrawal Limits

The Reserve Bank of India has maintained the number of free ATM transactions per month. As per the latest rules:

• 5 free transactions per month at own-bank ATMs (including financial and non-financial transactions)
• 3 free transactions per month at other-bank ATMs in metro cities
• 5 free transactions per month at other-bank ATMs in non-metro cities

These free limits include both cash withdrawal and non-financial transactions like balance enquiry or mini-statement requests. 

Overview of ATM withdrawal charges before and after May 1, 2025

Why has RBI Increased ATM Charges?

The Reserve Bank of India (RBI) has allowed banks to increase ATM withdrawal charges to cover rising costs. To help banks meet these expenses and continue offering better, safer services to customers, the RBI has approved a small hike in ATM charges from May 1, 2025. 

Impact of New ATM Withdrawal Charges on Customers

The increase in ATM withdrawal charges from ₹21 to ₹23 per transaction may lead to slightly higher monthly costs for customers who frequently withdraw cash. Planning ATM visits carefully, using digital payment modes like UPI, and avoiding small frequent withdrawals can help customers manage and minimize extra charges.

Final Word

Starting May 1, 2025, ATM users in India will need to pay ₹23 per transaction after exceeding the free monthly limit. While the number of free transactions remains unchanged, customers should be mindful of their usage to avoid additional fees. Staying informed about the latest ATM charges can help you plan your withdrawals smartly and save unnecessary costs.