Indian expats in the UAE traveling to India should be aware of important changes to ATM transaction fees that came into effect on May 1, 2025.

The Reserve Bank of India (RBI) has updated its ATM fee structure, raising charges for transactions beyond the free monthly limit. The number of free withdrawals has also been reduced, varying between metro and non-metro areas. To avoid unexpected costs, travelers are advised to plan their cash usage and explore alternative payment methods.

What’s New?

Increased Fees:
The maximum fee per transaction beyond the free limit has risen from Rs 21 to Rs 23. This applies to both financial and non-financial ATM transactions, as well as Cash Recycler Machines (CRMs), excluding deposits.

Revised Free Transaction Limits:

• Metro areas: 3 free transactions per month at other bank ATMs
• Non-metro areas: 5 free transactions per month at other bank ATMs
• All areas: 5 free transactions per month at your own bank’s ATMs

These limits cover both cash withdrawals and non-financial services like balance checks or PIN changes.

Who’s Affected?

The new rules apply across all banks and ATM operators in India, including commercial banks, regional rural banks (RRBs), co-operative banks, and authorized white-label ATM operators.

Interchange Fees Unchanged

The ATM interchange fee—charged between banks for cross-bank usage—remains at Rs 19 for financial transactions and Rs 7 for non-financial ones. For CRMs, it’s Rs 17 and Rs 6, respectively.

Impact & Advice

BLS E-Services Chairman Shikhar Aggarwal noted that these changes may push more customers toward digital banking or fee-free options like MicroATMs, especially in rural and semi-urban regions.

Tips for ATM Users:

• Keep track of your monthly transactions to avoid extra charges.
• CRMs follow the same fee structure (excluding deposits).
• Plan larger or frequent withdrawals wisely to stay within free limits.