Indian expats living in the UAE and planning a visit to India should be aware of the Reserve Bank of India’s (RBI) revised ATM transaction charges, which came into effect on May 1, 2025. These new regulations bring increased fees for additional withdrawals and changes in the number of free monthly ATM transactions, prompting travellers to reconsider their financial strategy when in India.

 

What’s Changing?

Starting this month, the maximum fee per transaction after the free limit has increased to ₹23, up from ₹21. This hike applies to financial transactions (cash withdrawals) and non-financial transactions (balance inquiries, PIN changes), conducted not only at ATMs but also Cash Recycler Machines (CRMs), except for cash deposits.

 

Revised Free Transaction Limits

Under the updated rules:

• Metro cities: 3 free transactions per month at ATMs of other banks

• Non-metro cities: 5 free transactions per month at ATMs of other banks

• Across India: 5 free monthly transactions at your own bank’s ATMs

These apply across all banks and ATM operators, including white-label ATMs and CRMs.

 

What Does This Mean for Indian Expats?

For Indian expats in the UAE visiting India, this means:

• Planning your cash withdrawals becomes crucial to avoid excess fees

• CRMs will also follow this pricing model, except for deposit transactions

• More users are expected to shift to digital payments, especially for small transactions

 

Key Tips to Avoid Charges

• Track your monthly ATM usage to stay within free limits

• Make larger but fewer withdrawals when in India

• Explore digital wallets, UPI, or banking apps to cut down on ATM dependency

• Be cautious of ATM usage in metro cities where free limits are lower

 

Interchange Fees Still Apply

Even though ATM users are charged by their banks, the interchange fee—what banks pay each other when a customer uses another bank’s ATM—remains ₹19 for financial and ₹7 for non-financial transactions.

 

India’s Expanding ATM Network

As of January 2025, India has over 2.1 lakh ATMs and CRMs nationwide. While the network continues to grow, these revised charges signal a nudge toward digital-first banking, especially for frequent travellers and expats.

 

Whether you're visiting India for business or family, Indian expats in the UAE should stay informed and plan their financial activities accordingly. With proper budgeting, smart use of ATM services, and a shift toward digital payment methods, you can avoid unnecessary charges and manage your funds effectively during your stay.

 

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