Indian expats in UAE, take note: ATM withdrawals get costlier from May

Indian expats in the UAE planning to travel to India should be aware of upcoming changes to ATM transaction charges, which will take effect on May 1, 2025.

The Reserve Bank of India (RBI) has revised its ATM fee structure, increasing the charges for withdrawals beyond the free transaction limits.

Additionally, the number of free withdrawals permitted each month has been adjusted, with different limits set for metropolitan and non-metropolitan areas. These changes may impact your ATM usage during trips to India, so it's important to plan ahead and consider alternative payment methods to avoid additional costs.

Starting May 1, 2025, the Reserve Bank of India's (RBI) revised ATM transaction charges will take effect. The move introduces higher fees for additional transactions and changes to the number of free withdrawals allowed each month.

Customers will now be charged a maximum of Rs 23 per transaction beyond the free usage limit, up from the earlier Rs 21. This applies to both financial and non-financial transactions at ATMs, as well as at Cash Recycler Machines (CRMs), excluding cash deposits.

Under the updated framework:

These limits apply to both financial (withdrawals, deposits) and non-financial (balance inquiry, PIN changes) transactions.

The new fee structure is applicable to all commercial banks, regional rural banks (RRBs), co-operative banks, authorised ATM network operators, and white-label ATM operators.

The interchange fee—charged between banks when customers use ATMs not owned by their bank—remains set at Rs 19 for financial transactions and Rs 7 for non-financial ones. ATM networks will continue to determine the exact charges.

According to BLS E-Services Chairman Shikhar Aggarwal, this change may push more users toward digital options or fee-free alternatives like MicroATMs and Business Correspondent (BC) networks, particularly in rural and semi-urban areas.

As per the RBI, these rules will also apply to transactions conducted at CRMs, with the exception of deposits. The interchange fees for CRMs match those of ATMs: Rs 17 for financial and Rs 6 for non-financial transactions.

As of January 2025, India has 1,30,902 on-site and 85,804 off-site ATMs and CRMs nationwide. Customers are encouraged to make informed decisions regarding their cash withdrawals and consider digital banking options to avoid rising transaction fees.