Mumbai: The Reserve Bank of India (RBI) has rolled out a revised framework for ATM usage charges, effective Thursday, May 1. The changes impact the number of free transactions allowed, charges for exceeding those limits, and the structure of interchange fees across the banking sector.

As per the updated norms, customers will now face higher fees for ATM transactions beyond their monthly free quota. In metro cities, three free ATM transactions are allowed per month, while non-metro areas allow five. These limits apply to both financial and non-financial transactions when using other banks’ ATMs. However, only financial transactions count toward the free limit when customers use their own bank’s ATMs.

Once a customer exceeds the free limit, they will be charged ₹23 for each additional transaction made at ATMs or Cash Recycler Machines (CRMs). This fee excludes applicable taxes and does not apply to cash deposits made via CRMs.

The RBI’s move aims to ensure the continued financial viability of ATM operations, which have been strained by rising costs, including maintenance, cash logistics, and technological upgrades. With over 2.16 lakh ATMs across India, the updated fee structure is intended to support smaller banks and white-label ATM providers while encouraging digital payments amid growing operational demands.

Here is the summary of revised ATM charges (post free limits):