ATM charges to get costlier from May 1 — what you need to know
Customers alert! Your automated teller machine (ATM) transactions are set to get costlier from May 1 onwards, with banks increasing charges by ₹ 2, for all transactions over the montly limit.
This comes after the Reserve Bank of India (RBI) said it would allow banks to increase ATM charges for money withdrawns exceeding the free usage. 'Beyond the free transactions, a customer may be charged a maximum fee of ₹ 23 per transaction. This shall be effective from May 1, 2025,' RBI said in a circular on March 28.
The RBI's circular is applicable to all commercial banks, including regional rural banks (RRBs), co-operative banks, authorised ATM network operators, card payment network operators, and white label ATM operators.
It will now cost you ₹ ₹ 23 per transaction from the earlier ₹ 21/each, on all transactions / withdrawals from bank ATMs beyond the monthly free use.
As of January 2025, there are 1,30,902 on-site ATMs and cash recycler machines (CRMs), and 85,804 off-site ATMs and CRMs, according to a PTI report.
At present, the central bank permits five free monthly withdrawals from' ATMs of your own bank, and another three from other banks in metro cities. In non-metro cities, aside from the five free ATM transactions at your own bank, you get another five transactions at other banks.
Financial (money withdrawal, deposit, etc.) and non-financial transactions (checking balance, change of PIN, etc.) are included in the monthly free transactions — whether at your bank ATM or another bank's ATM.
No. According to the RBI circular, banks are also allowed to apply, mutatis mutandis, the charges hike to transactions done at CRMs (other than for cash deposit transactions).
Further, the circular also said the ATM interchange fee will be as decided by the ATM network. At present, interchange fee per transaction is ₹ 17 for financial transactions and ₹ 6 for non-financial transactions in all centres.
The RBI periodically updates the number of free ATM transactions and maximum charges that can be applied on a customer beyond the mandatory free usage. This is part of that revision process.
'While this hike may burden frequent ATM users, it presents a significant opportunity for Business Correspondents (BCs) and digital-first players,' Shikhar Aggarwal, Chairman, BLS E-Services told PTI.
'With ATM withdrawals becoming costlier, customers — especially in rural and semi-urban areas — will increasingly turn to MicroATMs and BC networks, which remain fee-free for transactions,' he added.
Key Takeaways ATM transaction charges will increase from ₹21 to ₹23 for withdrawals exceeding the free limit.
The RBI allows banks to apply this charge hike to both ATMs and cash recycler machines (CRMs).
Frequent ATM users may seek alternatives like MicroATMs and Business Correspondents to avoid fees.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
42 minutes ago
- Mint
Rajat Vohra to take over as India CEO of Redington from July 1
Chennai, Jun 11 (PTI) Integrated technology solutions provider Redington Ltd would elevate the current Chief Sales Officer Rajat Vohra as its Chief Executive Officer, India with effect from July 1, the company said on Wednesday. With over two decades of experience in business development, sales, strategy and leadership across consumer and enterprise segments, Rajat Vohra is a seasoned professional for his strategic vision. On his new role, Rajat Vohra would be responsible for overseeing the India business operations of the Group, the city-headquartered company said in a press release on Wednesday. Prior joining Redington, he has held senior leadership roles at Newell Brands, HP Inc., Samsung and Shell. Meanwhile, the current CEO of the company, Ramesh Natarajan would be elevated to the post of CEO India and Middle East operations with effect from July 1. He would lead the operations and growth strategies of the Redington Group across India and the Middle East markets. In his 28 years at the company, Redington has built a strong portfolio of consumer and enterprise businesses and expanded its reach into new verticals. He played a pivotal role in forging strategic partnerships significantly strengthening the company's portfolio, the company said. Commenting on the appointments, Redington Ltd Group CEO V S Hariharan said, "The latest leadership transitions represent a pivotal step in Redington's journey toward enhanced regional synergies and a more customer-centric approach. Ramesh has played a key role in developing our strong leadership position in India through strengthening OEM partnerships. " "With sharp commercial acumen and a deep understanding of the Indian landscape, Rajat (Vohra) is exceptionally well-positioned to lead our India operations into the next phase of growth," he added.
Mint
an hour ago
- Mint
Overweight on financials, industrials; power, railways, defence look attractive for long term: Mihir Vora, TRUST MF
Expert view on markets: Mihir Vora, CIO at TRUST Mutual Fund, believes the medium-term outlook of the Indian stock market is positive. He underscored that healthy earnings and valuation comfort are driving the mid and small-cap segments. In an interview with Mint, Vora shared his views on markets and sectors he is positive about. Here are edited excerpts of the interview: The medium-term outlook is positive, albeit with risks in the background, and there are quite a few potential triggers which can potentially take the market to new highs. Macro conditions in India are firming up. GDP for Q4FY25 surprised positively at 7.4 per cent, driven by a steady expansion in private consumption on the rural side and capex momentum in government spending. CPI inflation eased to 3.2 per cent, staying well below the RBI's upper tolerance. Forex reserves climbed to $693 billion, liquidity conditions turned surplus, and the manufacturing PMI remained robust at 57.6, signalling sustained momentum. May saw the highest monthly FPI inflows in eight months, while DIIs continued their net buying streak. The market has re-rated sharply over the past year, but with forward earnings growth of 12-15 per cent, supported by private capex, corporate deleveraging, and strong domestic demand, there's fundamental backing to this optimism. The recent terrorist event and India's swift, decisive response led to a surge in domestic confidence. Strategically, India's firm stance against future attacks and its demonstrated military precision added to the country's geopolitical credibility. RBI provided an extra boost to growth sentiments with a sharp rate cut and CRR cut, clearly indicating a pro-growth stance as inflation is under control. The global backdrop is positive, and many central banks are cutting rates. Overall, financial conditions are easy and conducive for risk assets. A deeper correction would probably be triggered by external factors rather than internal. Trade wars, currency volatility and other geopolitical issues may impact the markets in the short term. The midcap and small-cap segments had seen a time and price correction in the last six months. This led to valuations going from expensive to a more reasonable zone. The earnings season has been quite good for midcaps, which has triggered the success of these and small-caps. Most of the sectors doing well are the ones that did well in the previous run. And now, with the RBI policy, even the financials are catching up. We continue to believe that the domestic sectors will do better than the global sectors. We are positive on financials, industrials, selected utilities and selective consumer discretionary segments. The other places where we see good growth on a long-term basis are segments like power transmission, distribution, railways, defence, renewables, etc. We have been bullish on defence for quite some time and continue to do so. We believe it is a very long-term story as the segment has just begun to emerge in the past few years. It is not very often that you can get entry into a segment with a long runway just as the sector is beginning to open up and grow. The key trigger is the opening up of the sector to the private sector. Now, apart from local demand, we can cater to the global defence markets, which have far larger potential. As far as PSUs are concerned, we do not consider all PSUs as a monolithic segment. It consists of stocks in many different sectors, and we analyse each stock on a standalone basis rather than using the same broad brush to paint all of them. Macro fundamentals, policy clarity, and broadening sectoral participation provide a solid backdrop. While global risks remain, India's resilience and reform-driven growth make it a compelling structural story. Volatility may continue, but investors with a disciplined asset allocation and long-term perspective should stay invested. We are positive on the domestic sectors compared to the global. We are overweight on financials, industrials and underweight in consumer staples, utilities, energy and consumer discretionary. India has the least dependence on exports as a percentage of GDP. While there will be a global impact and India may not remain completely untouched, we believe that we will be able to tide out through the crisis with a good diplomatic approach and the strength of domestic demand. India will continue to remain the fastest-growing large economy in the world. Inflation is not a concern as our fiscal and monetary policy has been quite prudent. We are seeing flows in both our funds, and even our small-cap fund is close to ₹ 1,000 crore in assets. We follow a market-cap agnostic approach and pick and choose the best stocks across all market-cap buckets. While the allocation changes from time to time, currently, less than 50 per cent of our portfolio is allocated to large caps. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
India.com
an hour ago
- India.com
New director, new board, new ideas, Rs 300000000000..., this Ratan Tata's company gets ready for..., name is...
New director, new board, new ideas, Rs 300000000000..., this Ratan Tata's company gets ready for..., name is... Tata Sons, the main holding company of the Tata Group, is about to see some important changes. A few board members are set to retire soon, and new members will be brought in to take their place. These changes are expected to bring fresh ideas and energy into the company. Along with this, Tata Sons is also planning a big investment of Rs. 30,000 crore (around USD 3.5 billion) into its growing businesses. According to a report in the Economic Times , Ralf Speth, the former CEO of Jaguar Land Rover, might retire soon as he is turning 70. He joined the Tata Sons board in 2016, the same year when Cyrus Mistry was removed as chairman. Another board member, Leo Puri, stepped down in April this year. Reports say that at least one of the two vacant positions may be filled by a senior executive from one of the Tata Group companies. Who might join the board? TV Narendran, the current CEO and MD of Tata Steel, is said to be a strong candidate for the board. However, Tata Sons has not officially commented on this matter yet. Another board member, Ajay Piramal, may also step down next year as he turns 70. Piramal has been on the board since August 2016. Tata Sons follows an internal policy where people in executive roles retire at 65, while those serving on the board can remain until the age of 70. These upcoming exits and appointments are expected to significantly change the board's makeup — a board originally restructured by Ratan Tata after the removal of Cyrus Mistry. Rs. 30,000 crore investment plan Tata Sons is preparing to invest Rs. 30,000 crore in new business areas. This includes companies like Tata Digital, Tata Electronics, and Air India. A large part of this investment will also go into the defence sector and battery production units. Company officials have said that the defence business is now a key priority. This fresh funding will be in addition to the Tata Group's earlier commitment of investing USD 120 billion in new businesses over the past few years. Application to RBI for delisting Tata Sons has also applied to the Reserve Bank of India (RBI) to give up its registration certificate. The company has already cleared over Rs. 20,000 crore of debt. This move ensures that Tata Sons will remain a private company, meaning its shares will not be traded on the stock market.
