ATM charges are set to increase. From May 1, 2025, higher charges will be levied for ATM usage. The new rules will come into effect once the free ATM withdrawal limit is exceeded. Recently, the Reserve Bank of India has approved an increase in fees for ATM services.

How much will the charges be increased?

• Withdrawal: Charges will be increased from ₹17 to ₹19 per transaction.
• Balance check: Charges will be increased from ₹6 to ₹7 per transaction.

However, these charges will only be applied after the free monthly transaction limit is exceeded. In metro cities, the free transaction limit for ATMs of banks other than the home bank is five. Outside metro cities, the free transaction limit is three. It is reported that white label ATM operators were demanding a fee increase, arguing that the old fees were insufficient due to rising operating costs. Hence, the fees have now been increased.

It has also been reported that small banks were under pressure due to the unchanged ATM charges, as their infrastructure is limited. They often have to rely on other banks’ ATMs. In such cases, they wanted their customers to use their own ATMs.

Meanwhile, it has recently been revealed that the State Bank of India has earned over ₹2,000 crore in the last five financial years from the charges levied on each ATM transaction.

How much has the public sector banks earned in the last five financial years from these additional charges levied on customers? Trinamool MP Mala Roy asked the Union Finance Ministry this question in Parliament on Monday. It was revealed that from the financial year 2019-20 to the financial year 2023-24, the country’s largest public sector bank, SBI, has earned ₹2,043 crore in this category.