Axis Bank has announced changes in ATM transaction fees for its savings account and trust account holders. The bank has made it clear that these new rates will be effective from July 1, 2025, which will directly affect millions of account holders. According to the information given by the bank, services like cash withdrawals and balance checks from ATMs, which were earlier free up to a certain limit, will now have to be charged more for their additional use.
Huge increase in ATM transaction fee
Till now, if a customer used to make additional transactions after the free limit set in Axis Bank, a fee of ₹21 was charged per transaction. But, from July 1, 2025, this fee will increase to ₹23 per transaction. This increase will apply to Axis Bank ATMs as well as ATMs of other banks.
This increase will apply to facilities like cash withdrawal and balance inquiry. This simply means that it has become very important for customers to take care of their free limit before using the ATM so that unnecessary charges can be avoided.
Which accounts will be directly affected?
According to the bank, these changes will directly affect the following types of account holders:
Savings Account Holders
NRI NRI Customers
Trust Accounts
Priority Banking Customers
Burgundy Category Customers
However, the impact of this change on accounts that already have the facility of unlimited transactions will be limited or not at all.
What is the reason behind the changing rules?
According to banking sector experts, banks are increasing this fee due to increasing operational costs, technical maintenance, and cash handling charges. The cost of ATM services is constantly increasing, and to compensate for this these steps are being taken. Reserve Bank of India (RBI) has also allowed banks to increase ATM charges so that they can cover their costs and provide better services to customers.
Important advice for customers
The bank has advised its account holders to get clear information about the free transaction limit of their accounts and the new fee structure. Customers have also been advised to:
Limit the use of ATMs
Use digital options
Withdraw large amounts at once
How to know your free transaction limit?
The free limit is different for each account holder, depending on their account type, location (urban/rural), and relationship with the bank. You can get this information in the following ways:
Visit the official website or mobile application of the bank.
Contact the bank branch.
Call the customer care helpline.
What does the Reserve Bank of India (RBI) rule say?
The Reserve Bank of India (RBI) has directed banks to provide a certain number of free ATM transactions to customers every month. In urban areas, this number has been fixed at 5 times, while in rural areas it can be 3 to 5 times (depending on the ATMs of other banks). After this limit, banks can charge a fee per transaction, but it should be only within the maximum limit set by RBI (which is now ₹23 per financial transaction).
Possible impact of the change
Those who have limited monthly transactions will have to be more vigilant to avoid these charges. Banks can promote facilities like UPI, Net Banking, and Digital Wallets through such changes. Those who find it more convenient to withdraw cash from ATMs may have to pay additional charges.
Go digital and save
Experts believe that digital payments and UPI will increase the number of transactions in the country. UPI-based transactions are more secure, faster, and can be done without any additional cost. Therefore, customers are advised to increase the use of free digital options like UPI, IMPS, RTGS, and NEFT. These facilities will help you to complete your financial transactions easily without any additional cost.
