ATM Rules Changed from Today: More Charges, New Limits—Here’s What It Means for You

New ATM rules have come into effect from today, bringing revised charges and limits that will directly impact bank customers across India. The changes mainly affect users who frequently withdraw cash or check balances beyond the free transaction limit.

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What Has Changed Under New ATM Rules

The updated rules focus on ATM transaction limits and charges:

• Customers still get a fixed number of free ATM transactions per month
• Once the free limit is crossed, charges per transaction have increased
• Both financial (cash withdrawal) and non-financial (balance check, mini statement) transactions are included

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Revised ATM Charges

Under the new rules:

• Charges beyond free transactions can now go up to ₹23 per transaction (earlier ₹21)
• This applies to transactions done at other bank ATMs
• Charges may vary slightly depending on individual bank policies

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Free Transaction Limits (No Change)

Customers can still avail:

• 5 free transactions per month at their own bank ATMs
• 3 free transactions in metro cities at other bank ATMs
• 5 free transactions in non-metro areas at other bank ATMs

After these limits, charges will apply.

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Who Will Be Affected the Most

These changes will mainly impact:

• People who frequently withdraw small amounts of cash
• Users relying heavily on ATMs instead of digital payments
• Customers in metro cities with lower free transaction limits

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Why the Rules Were Changed

The revision aims to:

• Cover rising ATM maintenance and operational costs
• Encourage digital payment adoption
• Streamline ATM usage across banks

Banks have been seeking an increase in charges due to higher infrastructure and service costs.

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How to Avoid Extra Charges

To minimise ATM fees:

• Plan withdrawals to reduce frequency
• Use your own bank’s ATM whenever possible
• Opt for digital payments (UPI, cards) for small transactions
• Avoid unnecessary balance checks at ATMs