New ATM guidelines from Might 1, transaction prices to extend after free restrict
The Reserve Financial institution of India (RBI) has up to date the framework for ATM prices, which will probably be efficient on Thursday (Might 1). The modifications will have an effect on free transaction limits, prices for extra transactions, and interchange charges within the nation’s banking system.
In accordance with the brand new guidelines, prospects can use the ATM for a set variety of transactions in a month, after which a charge will probably be charged. There will probably be three free transactions in metro areas and 5 in non-metro areas, and they’re going to embody each monetary and non-financial transactions.
As soon as the transaction restrict is reached, a buyer could also be charged ₹23 for each further transaction that they make utilizing the ATM and the Money Recycler Machines (CRMs). However the prices will not be relevant for depositing money by way of the CRMs.
Whereas solely the monetary transactions will probably be counted when a buyer makes use of their very own financial institution’s ATM, each monetary and non-financial transactions will probably be counted for different banks.
Additionally learn: RBI permits minors above 10 years to function financial savings financial institution accounts independently
The rationale for the RBI choice
The RBI’s choice comes as there’s a want to make sure the monetary viability of ATM operations within the nation. As per information reported by Livemint, India had 2,16,706 ATMs as of January 2025, together with 1,30,902 on-site and 85,804 off-site items.
These ATM operations have been impacted by a number of components, together with rising operational prices equivalent to upkeep, money dealing with, and expertise upgrades. These components have made it needed to regulate the charge construction to help continued ATM availability, giving aid to smaller banks and white-label operators.
The RBI’s revision of ATM transaction prices, particularly associated to the withdrawal of money, displays a broader effort to stability buyer comfort with the rising price of ATM operations. Whereas the charge improve is modest, it signifies an evolving monetary ecosystem the place digital transactions proceed to realize traction and bodily money dealing with calls for extra strong infrastructure help.
