TL;DR: Starting May 1, 2025, the Reserve Bank of India (RBI) has approved banks to increase ATM withdrawal charges by ₹2, making it ₹23 per transaction beyond the free monthly limit.
Hey folks! Big news on the banking front! From May 1, 2025, withdrawing cash from ATMs beyond your free monthly limit will pinch your pocket a bit more. The RBI has given the green light to banks to hike the ATM transaction fee by ₹2. So, instead of ₹21, you'll now shell out ₹23 for each extra withdrawal.
What's the Freebie Limit?
You're entitled to five free transactions every month at your bank's ATMs. Hit up other banks' ATMs, and you get three free transactions in metro cities and five in non-metro areas. Cross these limits, and the ₹23 fee kicks in.
Why the Hike?
The RBI reckons that maintaining ATMs and ensuring cash availability costs banks more these days. This fee bump helps banks manage those expenses.
Impact on You
For the average Joe, this means planning your cash withdrawals better. Frequent ATM visits beyond the free limit will add up, so maybe consider digital payments or withdrawing larger amounts less frequently.
MediaFx's Take
This move seems to favor banks' profitability over the common man's convenience. At a time when many are still reeling from economic challenges, adding extra fees feels like an additional burden on the working class. It's crucial for policies to balance institutional needs with public welfare.
