Daijiworld Media Network - Mumbai

Mumbai, Mar 29: The Reserve Bank of India (RBI) has allowed banks to increase charges on ATM withdrawals beyond the free monthly limit by Rs 2, making it Rs 23 per transaction starting May 1.

As per RBI guidelines, customers are eligible for five free transactions (including financial and non-financial) per month at their own bank's ATMs. Additionally, they can avail three free transactions in metro centres and five in non-metro centres at other bank ATMs.

"Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1," the RBI stated in a circular.

Currently, banks charge Rs 21 per transaction after a customer exhausts their free limit. The revised charges will also apply to cash withdrawals from Cash Recycler Machines (CRMs), except for cash deposit transactions.

India’s Current Account Deficit Rises to $11.5 Billion in Q3 FY25

Meanwhile, India’s Current Account Deficit (CAD) increased to $11.5 billion (1.1% of GDP) in the December quarter (Q3) of 2024-25, up from $10.4 billion (1.1% of GDP) in the same period last year. The rise is primarily attributed to a higher trade deficit.

However, the CAD has moderated from $16.7 billion (1.8% of GDP) in the previous quarter (Q2 FY25), reflecting a partial improvement in external balances.

The merchandise trade deficit widened to $79.2 billion in October-December 2024-25, compared to $71.6 billion in the year-ago period, highlighting sustained pressure on India's trade front.