If you often withdraw money from ATM, then this news is very important for you. From May 1, 2025, the fee levied on ATM transactions is going to change. The Reserve Bank of India (RBI) has allowed banks to change ATM charges and transaction limits. This will have a direct impact on the pockets of common people.
What is the new rule?
According to RBI instructions, now if a customer uses the ATM more times than the free limit set by his bank, he will have to pay more fee on every transaction.
- Earlier this fee was ₹ 21 + tax, which has now been increased to ₹ 23 + tax.
- This charge will be levied only on cash withdrawal, not on balance check, mini statement or PIN change.
- This rule will also apply to customers of big banks like HDFC, SBI, PNB, Kotak Mahindra, IndusInd.
How many free transactions in which cities?
- In metro cities (like Delhi, Mumbai, Chennai) – only 3 free transactions in a month
- In other cities – 5 free transactions in a month
After these limits, ₹23 + GST will be charged on every transaction, whether it is financial or non-financial.
Bank-wise change information
SBI (State Bank of India)
SBI customers can now avail 5 free transactions from SBI ATMs and 10 free transactions from other bank ATMs, if their monthly average balance is high.
Unlimited free transactions facility for those with balance more than ₹1 lakh.
Charges for exceeding the limit:
- At SBI ATM: ₹15 + GST
- At other bank ATMs: ₹21 + GST
HDFC Bank
From May 1, 2025, cash withdrawal will be charged at ₹23 + tax.
There will be no charge on non-financial transactions, if done from your bank’s ATM.
PNB (Punjab National Bank)
From May 9:
₹23 on cash transactions
₹11 (GST extra) on non-financial transactions
IndusInd Bank
₹23 charge on cash withdrawal after free limit from non-IndusInd ATM.
Why was this change made?
RBI has made this change with the aim of increasing transparency, promoting digital transactions and balancing the cost of ATM network. Also, this will encourage customers to move towards digital options according to their banking needs.
Tip: How to avoid extra charges?
- Use ATM only when needed.
- Give priority to options like digital payment, net banking, UPI.
- Take advantage of additional free transactions by increasing the monthly average balance of your account.
- Use the facility of balance check or mini statement from the bank’s app.
Conclusion
The new ATM fee rules coming into effect from May 1, 2025 call for caution among common customers. Customers who use ATMs more frequently now need to be aware of their free limits and adopt digital options.