Tamil Nadu Chief Minister M.K. Stalin slammed the Centre and Reserve Bank of India for permitting banks hike to charges for ATM withdrawals beyond the free limit. Stalin said the move would negate the objectives of financial inclusion of the poor.
In a social media post on X, Stalin said, “The Union Government urged everyone to open bank accounts. Then came demonetisation, pitching #DigitalIndia. What followed? Charges on digital transactions, penalties for low balances and now the RBI has allowed banks to charge up to Rs. 23 for ATM withdrawals beyond monthly limit.”
The Union Government urged everyone to open bank accounts. Then came demonetisation, pitching #DigitalIndia.
— M.K.Stalin (@mkstalin) March 30, 2025
What followed? Charges on digital transactions, penalties for low balances and now the RBI has allowed banks to charge up to Rs. 23 for ATM withdrawals beyond monthly… https://t.co/Bv0AWMEEa9
Stalin said the move would negate the objectives of financial inclusion. He added the move will severely affect MNREGA workers and beneficiaries of the Tamil Nadu government’s women monthly assistance scheme. “Beneficiaries of #MNREGA, which is already starved of funds and the poor who benefit from our #KMUT cash transfers will be the ones who will be hit the hardest. This is not digitisation. It is institutionalised extraction. The poor swipe, the rich smile,” the chief minister charged.
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The RBI on Friday permitted banks to increase charges on ATM cash withdrawals beyond the free monthly usage by Rs 2 to Rs 23 per transaction from May 1. "Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1, 2025," the RBI said in a circular. Currently, banks are allowed to charge Rs 21 per transaction, after a customer exhausts the free transaction limit.
Currently, account holders are eligible for five free transactions every month from their own bank ATMs. They are also eligible for free transactions from other bank ATMs – three transactions in metro centres and five in non-metro centres, PTI reported.
