ATM Transaction New Charges: The rules regarding ATM are going to change on May 1. Banks will now charge more for withdrawing money from ATM. The Reserve Bank of India (RBI) has approved the increase in charges for ATM transactions, which will come into effect from May 1, 2025. Along with this, banks have also been approved to amend the transaction limit, under which it may also come down.
ATM Transaction New Charges: This step has been taken by RBI with the aim of increasing transparency in customer charges and giving flexibility to the ATM network. Many banks including State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB) and Kotak Mahindra Bank have already informed customers about the change in charges levied on exceeding the free ATM transaction limit.
SBI was the first to announce the increase in charges and informed that the new ATM transaction charges will be applicable from February 1. The bank said that the aim of the new structure is to simplify the charge slabs, promote digital banking and keep the transaction limit standard in metro and non-metro cities.
HDFC Bank ATM Charges
According to the information given on the HDFC Bank website, the ATM transaction fee of Rs 21 + tax will now be increased to Rs 23 + tax from May 1, 2025 for transactions exceeding the free limit. This fee will be applicable only on cash withdrawal. There will be no charge on non-financial transactions like balance inquiry, mini statement and PIN change.
If using a non-HDFC bank ATM, charges will be levied on both cash withdrawal and non-cash transactions such as amount enquiry, mini statement and PIN change.
Punjab National Bank (PNB)
PNB has said that a fee of Rs 23 will be levied on transactions beyond the free limit. The bank’s website said that it is informed that the customer charges for transactions beyond the free limit at ATMs of other banks have been revised to Rs 23 per financial transaction and Rs 11 per non-financial transaction (excluding GST) from May 09.
IndusInd Bank
Similarly, the bank said that a fee of Rs 23 will be levied on ATM cash withdrawals made beyond the free limit from non-IndusInd bank ATMs. According to the IndusInd website, ‘All savings, salary, NR, current account customers will be charged Rs 23 per transaction for ATM cash withdrawals made beyond the free limit from non-IndusInd Bank ATMs from May 1, 2025.’
What did RBI say on free transactions and charges?
RBI has provided clarification on the monthly allowance for free ATM transactions, with a difference between its bank’s ATMs and ATMs operated by other banks. Customers in metro cities are entitled to three transactions every month, while customers in other cities can avail five free transactions per month.
Customers who exceed their monthly free transaction limit may have to pay a maximum charge of Rs 23 per transaction by the banks. This charge applies to both financial and non-financial transactions, with applicable taxes levied separately. The revised charges are not limited to normal ATM transactions and also cover transactions made at cash recycler machines (CRMs), except for cash deposits.
State Bank of India
From February 1, 2025, SBI has updated the number of free ATM transactions available to savings account holders based on their average monthly balance. As per the revised policy, all customers will get 5 free transactions at SBI ATMs and 10 free transactions at other bank ATMs every month.
For those maintaining a minimum balance of Rs 25,000 to Rs 50,000, the number of free transactions at other bank ATMs has been fixed at 5 per month. This also applies to account holders with a minimum balance between Rs 50,000 and Rs 1,00,000. On the other hand, those with a minimum balance of more than Rs 1,00,000 will get the benefit of unlimited free transactions at both SBI and other bank ATMs.
Talking about the charges, SBI will charge Rs 15 + GST per transaction at ATMs if the limit is exceeded. For transactions at ATMs of other banks, the charges are Rs 21 + GST per transaction, applicable in all areas including metro cities.
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