ATM cash withdrawal rule changed

Reserve Bank of India (RBI) has changed some rules regarding cash withdrawal from automated teller machine (ATM). New rules include high charges on transactions beyond free permissible limit, new free ATM transaction limit and increase in interchange fee.


  • Changes were made on the basis of recommendations of Chief Executive committee it constituted in June 2019.
  • Indian Banks’ Association reviewed entire ATM charges and fees with its focus on interchange structure for ATM transactions.

What are the new rules?

New rules are listed below:

a.    Free cash withdrawal limit from own bank:

Bank customers can now do five free financial and non-financial transactions every month from their own bank ATMs.

b.   Free ATM transaction limit from other bank:

ATM card holders can do three free financial and non-financial transactions in metro centres while five in non-metro transaction from other bank ATMs

c.    Charges on ATM cash withdrawal beyond free limit:

RBI allowed banks to increase charges on ATM transactions beyond free ATM transaction limit.

d.   Rise in interchange fee:

Interchange fee per transaction changed from Rs 15 to Rs 17 for financial transactions while from Rs 5 to Rs 6 for non-financial transactions in effect from August 1, 2021.

e.    New charges on ATM withdrawal beyond free transaction limit:

Bank customer will have to pay Rs 21 (currently it is Rs 20) for each ATM cash withdrawal beyond free transaction limit in effect from January 1, 2022.


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