Usage of Automated Teller Machines / Cash Recycler Machines– Review of Interchange Fee and Customer Charges
FinTech BizNews Service
Mumbai, March 29, 2025: The Reserve Bank of India had, from time to time, issued various instructions on the number
of free ATM transactions and maximum charges that can be levied on a customer beyond the
mandatory free transactions. Instructions have also been issued by RBI on interchange fee
structure for ATM transactions. Based on a review, it has been decided as under:
a. The ATM interchange fee will be as decided by the ATM network.
b. Customers are eligible for five free transactions (inclusive of financial and non- financial
transactions) every month from their own bank ATMs. They are also eligible for free
transactions (inclusive of financial and non-financial transactions) from other bank ATMs
viz. three transactions in metro centres and five transactions in non-metro centres.
Beyond the free transactions, a customer may be charged a maximum fee of Rs23 per
transaction. This shall be effective from May 01, 2025.
Applicable taxes, if any, shall be additionally payable.
d. These instructions shall also apply, mutatis mutandis, to transactions done at Cash
Recycler Machines (other than for cash deposit transactions).
2. This directive is issued under Section 10(2) read with Section 18 of the Payment and
Settlement Systems Act, 2007 (Act 51 of 2007).
Vishal Maru, Global Processing Head, Financial Software and Systems (FSS), says:
“The Reserve Bank of India’s decision to permit banks to raise ATM withdrawal charges is an encouraging move. This increase will help banks and service providers alike as the additional revenue stream can offset the escalating costs of maintaining and securing ATM networks, especially amid rising inflation and technology demands. It’s an opportunity to reinvest in infrastructure, making ATMs more reliable and efficient. For solution providers like us at FSS, it’s a catalyst to partner with banks, deploying cutting-edge innovations that enhance functionality, security and customer experience.”
