RBI Hikes ATM Cash Withdrawal Fees to Rs 23

Updates on ATM Transaction Charges

Effective May 1, the Reserve Bank of India (RBI) has increased the maximum ATM cash withdrawal fee that banks can charge customers to Rs 23 per transaction.

Taxes Included

• Applicable taxes will be added to this fee.

Previous ATM Interchange Fee

The RBI had earlier approved an increase in the ATM interchange fee, which is the amount banks pay each other, to Rs 19.

Free Transactions Permitted

• Customers are allowed five free ATM transactions per month at their own bank’s ATMs.
• Moreover, customers can make a fixed number of free transactions at other banks’ ATMs: three in metro centers and five in non-metro centers.

Fees for Exceeding Free Limit

For transactions exceeding the free limit, banks charge fees based on their respective board-approved policies. This fee is usually passed on to the customer by the card-issuing bank, while the charge is paid to the bank where the ATM transaction occurs (the acquirer).

RBI’s Recent Approval

Recently, the RBI approved a Rs 2 increase in the ATM interchange fee for cash withdrawals.