As per the instructions of the Reserve Bank of India (RBI), banks have implemented the revised rates of ATM charges from May 1, 2025. With this move of the banks, withdrawing cash from ATMs after the free limit will become expensive. Let us tell you that on March 28, the Reserve Bank of India approved the increase in charges after the free limit ended.
As per the rules of the Reserve Bank of India, any customer can make 5 free transactions from his bank’s ATM in a month. From today, after the limit of free transactions is exhausted, you will now have to pay an additional charge of ₹ 2 on each transaction. With the implementation of the new rules, after the free limit is exhausted, now a charge of ₹ 23 will be levied on each transaction. This change is important for those who use ATMs frequently.
New rules will apply from May 1
According to RBI’s notification dated March 28, 2025, “ATM interchange fee will be decided by the ATM network. After the free limit, a maximum of ₹ 23 can be charged to the customer on each transaction. This will be effective from May 1, 2025. Applicable taxes, if any, will be payable separately.” RBI had said that these instructions, with changes as required, will also apply to transactions made on cash recycler machines. This notification brings a significant change in the fee structure for ATM usage.
Free transactions will be available only 3 times in metro cities
According to the new rules, if you are using another bank’s ATM, you can do a maximum of 3 free transactions in a month in a metro city and a maximum of 5 free transactions in a non-metro city. If you are using your personal bank’s ATM, you can also do 5 free ATM transactions in a month. After exceeding the limit of free transactions, you will have to pay a fee of ₹ 23 on each transaction.
Currently, after the limit of free transactions is exhausted, banks can charge their customers a maximum of ₹ 21 on each transaction. Let us tell you that this decision will cost those bank customers who withdraw cash or use any other service using an ATM several times a month. This is a major change for those who frequently depend on ATMs.
Know the charges of SBI, HDFC, PNB and IndusInd Bank
Many banks including State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), and IndusInd Bank have implemented new rules for their customers today. Banks said that after the free limit, ₹ 23 + GST will have to be paid on each transaction. According to PNB, a fee of ₹ 11 will have to be paid on non-financial transactions. So, if you are a customer of these banks, be careful while using the ATM, and keep in mind your free transaction limit.