What changed
RBI removed the fixed interchange fee structure for ATM transactions, letting ATM networks decide the fee. The maximum charge a bank can levy on customers for transactions beyond free limits has been raised from ₹21 to ₹23 per transaction, effective May 1, 2025. These changes apply to both ATMs and Cash Recycler Machines (excluding cash deposits).
What it means for you
Banks and ATM operators can now negotiate interchange fees directly with networks, potentially improving revenue from ATM usage. The higher customer charge cap of ₹23 helps offset rising ATM deployment and maintenance costs. However, customers may see higher fees for excess usage, though free transaction limits (5 from own bank, 3 in metro/5 in non-metro from other banks) remain unchanged.
What you must do
- Update ATM transaction fee systems to cap customer charges at ₹23 per transaction from May 1, 2025.
- Engage with ATM networks to negotiate interchange fees under the new deregulated framework.
- Communicate revised charges to customers through notices and digital channels before the effective date.
- Review and adjust pricing strategies for Cash Recycler Machines, excluding cash deposit transactions.
Who it affects
All Scheduled Commercial Banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Authorised ATM Network Operators, Card Payment Network Operators, White Label ATM Operators
What is the new maximum customer charge per ATM transaction?
From May 1, 2025, banks can charge a maximum of ₹23 per transaction for ATM usage beyond the free limits, plus applicable taxes.
Are the free transaction limits changing?
No, the free transaction limits remain the same: 5 free transactions per month from own bank ATMs, and from other bank ATMs, 3 in metro centres and 5 in non-metro centres.
Does this apply to Cash Recycler Machines?
Yes, the instructions apply to Cash Recycler Machines for all transactions except cash deposits.