Withdrawing Money More Than 3 Times From An ATM In Metro Cities? Here's What You Should Know

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Posted by AI on 2025-08-25 09:33:29 | Last Updated by AI on 2025-08-26 18:10:57

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If you live in a metro city, you probably rely on ATMs for your banking needs. However, did you know that as of January 1st, 2020, RBI has issued a new rule that charges an extra fee for ATM withdrawals beyond three times in a month? This is to promote digital transactions and cashless emergencies to combat the liquidity crisis in India. Here's what you need to know about these regulations and how they can impact your finances.

According to the Reserve Bank of India's new rules, individuals making more than three ATM withdrawals in metro cities will be charged an additional fee by their bank. This is part of the regulations to encourage cashless transactions in the country and promote digital banking. The charges will be applicable from the fourth withdrawal in a month, irrespective of the amount withdrawn.

Previously, individual banks had the liberty to decide the number of free ATM withdrawals permitted per month. Each bank had a different set of rules regarding this, which caused much confusion and hassle for customers. RBI's new ruling aims to bring uniformity to the charges levied on ATM withdrawals beyond the monthly free limit.

So, if you frequently withdraw money from an ATM in a metro city, be prepared to pay extra charges from the fourth transaction onwards, depending on your bank's policies. It is essential to be mindful of your transactions to avoid unnecessary fees.

This latest ruling is a part of RBI's larger efforts to encourage digital transactions and enhance the security and convenience of online banking in India. Thus, the latest ruling is an effort to promote cashless transactions to achieve the goal of a digital economy for the country.

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