ATM charges are going up — Here's what you need to know

Withdrawing cash from ATMs is about to take a bigger bite out of your wallet. The Reserve Bank of India (RBI) has approved a hike in ATM transaction charges. Starting now, you'll be paying ₹23 per transaction—up from the earlier ₹21—once you exceed your free monthly limits.

Here's how it works:
You still get five free ATM transactions per month at your own bank's ATMs. Additionally, if you live in a metro city, you get three free transactions at other banks' ATMs. For those in non-metro areas, that number goes up to five.

However, once you cross these limits, every transaction—whether it's a cash withdrawal, a balance inquiry, or even a PIN change—will now cost you ₹23.

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This change might seem small, but it adds up quickly for people who rely heavily on ATM visits. For instance, if you exceed your limit by just four transactions a month, you're shelling out ₹92 extra. Over a year, that’s more than ₹1,000 in fees.

Why the hike? Banks cite increasing operational costs for ATM maintenance and upgrades, including enhanced security measures and infrastructure improvements.

What you can do:

• Plan ahead: Withdraw larger sums less frequently.

• Use digital banking: For balance checks or mini-statements, your bank’s mobile app or net banking can help you avoid unnecessary ATM visits.

• Track your limits: Some banks notify you when you're nearing your free transaction cap—keep an eye on those alerts.

In short, be strategic. ATM visits may be convenient, but if you're not careful, they’ll come at a cost. With digital payments growing, it might be time to rethink how you handle everyday banking.