The Reserve Bank of India (RBI) has allowed banks to increase fees for ATM cash withdrawals beyond the free monthly limit. Effective May 1 2025 customers exceeding their free withdrawal limits will be charged Rs 23 per transaction this is an increase of Rs 2 from current fee of Rs 21. Free ATM Transaction Limits Bank customers get a certain number of free ATM transactions each month. These include both financial transactions like withdrawals and non-financial activities like balance inquiries or taking mini statements. This change of Rs 2 increases per transaction once the free limit is crossed. Customers should review their bank’s ATM transaction policies and plan withdrawals effectively. 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 Rs 23 per transaction. This shall be effective from May 1 2025 the RBI said in a circular. Currently banks are allowed to charge Rs 21 per transaction after a customer exhausts the free transaction limit. The RBI further said the instructions shall also apply mutatis mutandis to transactions done at cash recycler machines (other than for cash deposit transactions). (With Inputs From PTI)