The Reserve Bank on Friday permitted banks to increase charges on ATM cash withdrawals beyond the free monthly usage by ₹2 to ₹23 per transaction from May 1.
Customers are eligible for five free transactions (inclusive of financial and non- financial transactions) every month from their own bank Automated Teller Machines (ATMs).
They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs — three transactions in metro centres and five in non-metro centres.
“Beyond the free transactions, a customer may be charged a maximum fee of ₹23 per transaction. This shall be effective from May 1, 2025,” the RBI said in a circular.
Banks are allowed to charge ₹21 per transaction, after a customer exhausts the free transaction limit.
The RBI further said the instructions shall also apply to transactions done at cash recycler machines (other than for cash deposit transactions).
CAD widens
India’s current account deficit (CAD) inched up to $11.5 billion, or 1.1 per cent of GDP, in the December quarter from $10.4 billion (1.1 per cent of GDP) in the year-ago period, mainly due to higher trade deficit.
However, the CAD in the December quarter of 2024-25 has moderated from $16.7 billion (1.8 per cent of GDP) in the preceding quarter of the fiscal year.
Merchandise trade deficit increased to $79.2 billion in the October-December period of 2024-25 from $71.6 billion in year-ago period.