Credit Card New Rule: Following the new guidelines issued by the Reserve Bank of India (RBI), the country’s major private banks have made major changes in their service charges. The effect of these rules, which came into effect from May 2025, has started showing to the customers from July. Big banks like ICICI Bank and HDFC Bank have implemented new charges on ATM transactions, debit cards, credit cards, and IMPS transactions, which is now going to put some additional burden on your pocket.
Withdrawing money from ATMs has now become more expensive
The fee levied on ATM transactions has increased. As per the guidelines implemented in May 2025, now ₹ 23 will have to be paid per additional transaction from ATM, which was earlier ₹ 21. The free facility of up to 5 transactions per month is available only at your own bank’s ATMs. ATMs of other banks allow up to 3 transactions in metro cities and 5 transactions in non-metro cities, after which a fee will be charged. This change is a step towards pushing customers towards digital payments more than cash withdrawals.
New rules of ICICI Bank
ICICI Bank has made the following important changes for its customers. After 5 free ATM transactions, a fee of ₹23 will be charged for every additional transaction. There will be no fee for non-financial transactions (such as checking balances), which is a relief for customers. 3 free cash transactions per month are allowed from a bank branch or cash recycler machine, after which a fee of ₹150 will be charged per transaction. This rule is for those who mostly transact in cash.
New charges on IMPS and cash deposits too
Now IMPS (Immediate Payment Service) transactions will also be charged, which are as follows:
Up to ₹1,000:- ₹2.50
Up to ₹1 lakh:- ₹5
Up to ₹5 lakh:- ₹15
Apart from this, monthly cash deposits of more than one lakh rupees will also be charged:
₹3.50 charge on every ₹1,000.
The maximum charge per transaction is limited to ₹150.
These changes will affect both online and cash transactions, which will further promote digital banking.
HDFC Bank has imposed new charges on credit card expenses
HDFC Bank has also changed its credit card policies, due to which some of your credit card expenses may now become expensive:
Gaming apps like Dream11, and MPL will attract an additional 1% fee for spending more than ₹ 10,000.
The same rule applies to wallets like Paytm and Mobikwik if you add money to them using a credit card.
The maximum charge per month on all charges has been limited to ₹ 4,999.
Additional charges on bill and rent payments too
Now, paying house rent through a credit card will attract a fee of ₹ 3.50 per ₹ 1,000 (which is 1% of the transaction).
In addition
1% additional charge on fuel expenses of more than ₹15,000 per month.
Or a 1% additional charge on electricity and water bills of more than ₹50,000.
A cap of ₹4,999 per month has been set on all charges.
Necessary changes in banking behavior
Due to these new rules, customers will have to make some changes in their banking behavior While withdrawing money from ATM, make transactions thoughtfully, so that unnecessary charges can be avoided. Avoid unnecessary cash transactions and use digital payments more. Increase the use of UPI, net banking, and mobile wallet.
While using a credit card, keep in mind the spending limit on gaming apps and wallets. Check the information about the charges levied on online transactions in advance. Before making any transaction, check the fee details on the bank’s website or app.
Thinking about changing the rules
The aim of these changes by RBI and banks is to promote digital transactions and limit unnecessary cash transactions. This will not only make the banking system smooth but will also increase the financial awareness of customers. This is an important step towards taking the country towards a ‘less-cash’ economy.