Rule of ATM will change in a week, know what is going to happen from May 1

ATM Rules: There are only a few days left for the month of April to end. At the same time, as soon as the next month, i.e., May, begins, there is going to be a change in the rules related to ATM transactions. In fact, recently the Reserve Bank of India (RBI) announced an increase in the charge for withdrawing cash from ATMs, which will be effective from May 1, 2025. In such a situation, all the customers using debit cards must know about the new rate.

In fact, the country’s central bank, RBI, in a recent statement said that now customers will have to pay a charge of Rs 23 for withdrawing money from ATMs. However, this charge will be applicable on withdrawals for the fourth time or more than three times. Let us tell you that, according to the RBI rule, there is no additional charge for withdrawing three times from the ATM of another bank. But after crossing this limit, customers will have to pay the charge. At present, this charge is Rs 21.

Know what the free ATM transaction limit is

Let us tell you that despite the increase in fees, customers will be able to avail themselves of limited free ATM transactions every month. According to RBI rules, a customer can do five free ATM transactions every month from the ATM of the bank in which he has an account, while in metro cities, three free ATM transactions can be done every month from the ATM of another bank. Whereas, in non-metro cities, customers can do five transactions every month from the ATM of another bank. But it has to be noted that if this limit is exhausted, then they will have to pay a charge of Rs 23 per ATM transaction.

Why did RBI increase ATM charges?

The Reserve Bank of India said in a statement that ATM operators had been demanding an increase in transaction charges for a long time, citing the increased cost of ATM maintenance, cash management, and security. After which this step has been taken. Let us tell you that earlier the Reserve Bank of India had increased the ATM transaction charge in the year 2021. During this time, the central bank had increased it from Rs 20 to Rs 21 per ATM transaction. This move of RBI will provide great relief to ATM operators.

According to government data, State Bank of India earns a good amount from ATM withdrawal fees. On the other hand, many public sector banks (PSUs) are struggling financially, partly because of the cost of maintaining ATM services.