From May 1, 2025, major Indian banks like SBI, PNB, HDFC, and others Indian banks have rolled out new ATM rules that directly affect how much you pay after exceeding your free transaction limit. These changes have been made following the Reserve Bank of India’s (RBI) directive and will impact all bank customers who frequently use ATMs for cash withdrawals or balance inquiries.
Let’s break down the changes, charges, transaction limits, and what this means for you.
Why the New ATM Rules Matter
The Reserve Bank of India (RBI), in a notification issued on March 28, 2025, permitted banks to revise ATM interchange fees and customer transaction charges. As a result, banks have now implemented higher transaction charges for ATM use after the free usage limit is crossed.
These rules are aimed at aligning with ATM network operational costs and ensuring transparent charges.
Key Highlights of the New ATM Rules
- New ATM charges came into effect on May 1, 2025.
- Free transaction limits remain unchanged, but the charges after the limit have increased.
- Customers will now be charged ₹23 + GST per transaction after crossing the free usage limit.
- Rules apply to both financial (cash withdrawal) and non-financial transactions (like balance checks).
- These changes apply to both metro and non-metro city customers.
New ATM Charges: Detailed Table
| Transaction Type | Old Fee (Post-Free Limit) | New Fee (From May 1, 2025) | GST Applicable |
|---|---|---|---|
| Financial Transaction | ₹21 | ₹23 | Yes |
| Non-Financial Transaction (PNB example) | ₹10 | ₹11 | Yes |
| Own Bank ATM (After Free Limit) | ₹21 | ₹23 | Yes |
| Other Bank ATM (Metro City) | ₹21 | ₹23 | Yes |
| Other Bank ATM (Non-Metro City) | ₹21 | ₹23 | Yes |
Note: Charges may vary slightly by bank and location. Always refer to your bank’s website for exact figures.
Free Transaction Limits – Know What’s Free
1. Own Bank ATM Usage
- 5 free transactions per month (including both financial and non-financial).
2. Other Bank ATM Usage
- Metro Cities: 3 free transactions per month.
- Non-Metro Cities: 5 free transactions per month.
Once you exceed these limits, each additional transaction will be charged ₹23 + GST.
What RBI Said About the Change
According to the March 28, 2025 circular issued by RBI:
“The maximum customer charges for ATM transactions beyond the free limit shall be ₹23 per transaction, effective from May 1, 2025. These charges also apply to transactions made via Cash Recycler Machines (CRMs).”
Additionally, the ATM interchange fee structure is now left to be decided by ATM network operators in accordance with RBI guidelines.
Banks That Have Implemented the New Rules
Several top banks have officially adopted the new ATM transaction fee structure:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- HDFC Bank
- IndusInd Bank
- And more private/public sector banks
Most banks have already notified their customers via SMS, email, and official websites.
Who Will Be Most Affected?
These new charges will have a bigger impact on:
- Frequent ATM users withdrawing cash multiple times a month.
- Senior citizens who rely more on physical cash.
- People in semi-urban or rural areas where digital transactions are less prevalent.
- Customers using multiple banks’ ATMs regularly.
Hence, understanding the new rules is crucial for managing your monthly finances efficiently.
How to Avoid Extra ATM Charges
Here are some tips to minimize or avoid paying extra ATM fees:
- Try to limit your ATM withdrawals to within the free monthly limit.
- Withdraw higher amounts in fewer transactions instead of multiple small withdrawals.
- Use digital payments (UPI, net banking, wallets) for small transactions.
- Keep track of monthly ATM usage through your bank’s app or SMS alerts.
- Use your own bank’s ATM whenever possible, as they usually offer more free transactions.
FAQs
Q1. From when are the new ATM charges applicable?
A: The revised charges came into effect from May 1, 2025, following RBI’s guidelines.
Q2. How many ATM transactions are free in a month?
A:
- 5 free transactions from your own bank’s ATM.
- 3 free transactions from other bank ATMs in metro cities.
- 5 free transactions from other bank ATMs in non-metro cities.
Q3. What is the charge after the free limit?
A: ₹23 + GST per transaction after exceeding the free limit.
Q4. Do these charges apply to balance inquiries too?
A: Yes, both financial and non-financial transactions (like balance check or mini statement) are counted.
Q5. Are senior citizens exempted from these charges?
A: No blanket exemption is given, but some banks offer special packages. Check with your bank.
Q6. What is the charge for failed ATM transactions?
A: In case of a failed transaction where cash is not dispensed, no charges should apply. You can raise a complaint.
Final Words: Stay Informed, Save Money
The new ATM rules introduced by banks under RBI’s guidance are designed to balance service costs with customer usage. While the free limit remains, the cost after exceeding it has gone up. It’s now more important than ever to monitor your ATM usage, rely more on digital payments, and stay updated with your bank’s policies.
For regular updates on banking, finance, and consumer rules, bookmark our website and keep yourself informed.
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