Increased ATM charges, monthly interest payouts amid major banking changes from May 1

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The Reserve Bank of India (RBI) and the Centre has announced some significant changes with banking in India, applicable from May 1.

Increased ATM withdrawal charges

The Reserve Bank of India has revised ATM transaction charges beyond the free limit. Customers will now pay ₹23 per transaction, up from ₹21, for both financial and non-financial transactions conducted at other banks' ATMs.

ATM transaction limits

The free transaction limits at the ATMs are set as–

• Five free transactions/month at your bank ATMs
• Three at other banks’ ATMs in metro cities
• Five at other banks’ ATMs in non-metro areas

RBL Bank revises interest payment frequency

In a move that could benefit account holders, RBL Bank has announced that starting May 1, it will shift to monthly interest payouts on savings accounts instead of the current quarterly system.

The interest will still be calculated daily based on the end-of-day balance.

Consolidation of Regional Rural Banks (RRBs)

One State-One RRB Drive: 15 Regional Rural Banks across 11 states will be merged into single entities within each state. The objective is to enhance operational efficiency and reduce administrative costs in the rural banking sector.

Reduction in total RRBs: The total number of Regional Rural Banks nationwide will be brought down from 43 to 28.