Revised ATM Fee Structure and RBI Mandate on Dispensation of ₹100 and ₹200 Banknotes
ATM Transaction Charges:
The Reserve Bank of India (RBI) has introduced a revised framework governing ATM transaction charges, effective from May 1, 2025. This initiative is aimed at enhancing transparency in customer service fees while providing greater operational flexibility to ATM operators.
Under the new guidelines, customers will be entitled to a specified number of free ATM transactions per month. In metropolitan regions, three free transactions will be permitted, while five free transactions will be allowed in non-metropolitan areas. These limits encompass both financial and non-financial transactions.
Beyond the permitted number of free transactions, users will incur revised charges as prescribed by the RBI. The framework also includes changes to the interchange fee structure, which determines the amount paid by one bank to another when a customer uses an ATM outside their home bank’s network.
Dispensation of ₹100 and ₹200 Denomination Banknotes:
To improve public access to lower-denomination currency, the RBI has directed all banks and White Label ATM Operators (WLAOs) to ensure that their ATMs regularly dispense ₹100 and ₹200 denomination banknotes. This measure is part of the central bank’s broader strategy to promote the availability of commonly used currency denominations across the country.
According to an official RBI circular:
- By September 30, 2025, a minimum of 75% of all ATMs must dispense either ₹100 or ₹200 denomination notes from at least one cassette.
- By March 31, 2026, this compliance level must increase to 90% of all ATMs.
This phased implementation is intended to facilitate a smoother transition and ensure widespread availability of these denominations in both urban and rural areas.
