
Starting May 1, 2025, customers will have to pay ₹23 per transaction at ATMs if they exceed the free transaction limit provided by their banks. Currently, banks charge ₹21 per extra transaction, so the fee has increased by ₹2 after more than three years.
Free ATM Transaction Limits:
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Customers get five free transactions (both cash withdrawals and non-financial transactions like balance inquiries) at their own bank’s ATMs every month.
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They also get three free transactions at other bank ATMs in metro cities and five free transactions in non-metro areas.
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Why is the Fee Increasing?
According to RBI, this increase will help banks and service providers cover the rising costs of maintaining and securing ATM networks, especially with inflation and new technology requirements.
Changes in ATM Interchange Fees
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The ATM interchange fee (the amount banks pay each other when customers use another bank’s ATM) will now be decided by ATM networks.
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The National Payments Corporation of India (NPCI) has revised the interchange fee on the National Financial Switch (NFS) network, effective May 1:
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₹19 for financial transactions (cash withdrawals)
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₹7 for non-financial transactions (balance inquiry, mini statements, etc.)
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This change does not apply to micro-ATMs, UPI-based deposits, or international transactions, which will continue at existing rates.
Also Read: You May Soon Have to Pay for UPI Transactions: Here’s What You Need to Know
Number of ATMs in India
As of February 2025, India has 258,000 ATMs and cash recycler machines. The number of NFS member banks has also grown to 1,349, up from 1,296 last year.