Do you frequently withdraw money from ATMs? If yes, then this news is important for you. From May 1, 2024, the rules for ATM withdrawals are changing. The Reserve Bank of India (RBI) has announced an increase in ATM fees. This means that if you withdraw money after exceeding the free transaction limit, you will have to pay higher charges than before. In this article, we will share all the details about this update.

What Does the New Rule Say?

Financial Transactions: After exceeding your free ATM transactions, you will now be charged ₹19 per withdrawal (previously ₹17).

Balance Enquiry: Checking your balance at an ATM beyond the free limit will now cost ₹7 (up from ₹6).

Free Transaction Limit for ATMs

Metro Cities: You can make 5 free transactions per month from ATMs of other banks.

Non-Metro Cities: You can make 3 free transactions per month from ATMs of other banks.

If you exceed this limit, you will incur an additional charge per transaction.

Why Did the RBI Make This Change?

  • Rising ATM Maintenance Costs: The cost of operating and maintaining ATMs has increased. White-label ATM operators (private ATM providers) have requested a fee hike to cover these expenses.
  • Declining ATM Usage: More people are using UPI and digital payments instead of cash, leading to a decrease in new ATMs.
  • Growth of Digital Payments: Digital payments in India have grown significantly, from ₹952 lakh crore in 2014 to ₹3,658 lakh crore in 2023.

How to Avoid Extra Charges?

  • Use Digital Payments: Instead of withdrawing cash frequently, try using UPI, mobile banking, or card payments.
  • Withdraw Larger Amounts: Instead of making several small withdrawals, withdraw a larger amount in one go.
  • Plan Your Transactions: Keep track of your ATM withdrawals to avoid exceeding the free limit.

Conclusion

From May 1, 2024, the new RBI rules will increase charges for additional ATM transactions. Frequent cash withdrawers will be impacted, but using digital payments and planning ATM withdrawals wisely can help you avoid extra charges. Stay updated and manage your transactions smartly!