RBI Lets Banks Hike ATM Withdrawal Costs From Rs 21 To Rs 23 Beginning May 1; Test Loose Restrictions.
The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) on friday allowed banks to increase ATM coin withdrawals from Rs 2 to Rs 23 per transaction via Rs 2 from May 1. The expenses might be applicable beyond the required 5 free month-to-month transactions. Currently, banks are allowed to charge Rs 21 in line with the transaction after a customer exhausts the free transaction restriction.
"Past the unfastened transactions, a customer may be charged a maximum rate of Rs 23 in step with the transaction. This shall be powerful from May 1, 2025," the RBI stated in a circular. customers are eligible for 5 loose transactions (inclusive of financial and non-economic transactions) each month from their very own bank automated teller machines (ATMs). They're also eligible for free transactions (which include financial and non-economic transactions) from different bank ATMs—3 transactions in metro centers and 5 in non-metro centers.
The RBI, in addition, stated the commands shall also practice, mutatis mutandis, for transactions carried out at cash recycler machines (aside from for coin deposit transactions). The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) had, now and again, issued diverse commands on the quantity of loose ATM transactions and most costs that can be levied on a consumer past the necessary loose transactions. Commands have additionally been issued through the RBI on interchange fee shape for ATM transactions. The circular additionally said the ATM interchange price might be as decided by means of the ATM network.
The contemporary interchange fee consistent with the transaction is Rs 17 for financial transactions and Rs 6 for non-monetary transactions in all centers. Commenting on the proposed costs, Shikhar Aggarwal, chairman of BLS E-offerings, the RBI's selection to increase ATM interchange prices underscores the developing fee of cash transactions in India.
"While this hike can also burden common ATM users, it presents a great possibility for commercial enterprise correspondents (BCs) and digital-first players. With ATM withdrawals turning into dearer, clients—particularly in rural and semi-urban regions—will an increasing number of flip to MicroATMs and bc networks, which continue to be rate-unfastened for transactions," he said. The RBI's circular is relevant to all industrial banks, such as RRBs, co-operative banks, approved ATM network operators, card price network operators, and white label ATM operators.
There had been 130,902 on-site ATMs and cash recycler machines (CRMs) and 85,804 off-site at end-January 2025. vishal Maru, worldwide processing head of economic software and systems (FSS), stated, "The RBI's decision to permit banks to raise ATM withdrawal costs is an encouraging flow. This increase will assist banks and carrier providers alike, as the extra sales circulation can offset the escalating expenses of retaining and securing ATM networks, especially amid rising inflation and era demands." It's an opportunity to reinvest in infrastructure, making ATMs more dependable and efficient. For answer companies like us at FSS, it's a catalyst to associate with banks, deploying innovations that enhance capability, security, and patron revelry, he stated.
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