RBI raises ATM charges from today (May 1) with a customer to be charged a maximum fee of Rs 23 per transaction beyond the free transaction limit
RBI raises ATM charges from today (May 1): The new ATM guidelines of RBI have come into effect from today (May 1) that will make ATM withdrawals beyond the free limit costlier.
If you use ATMs beyond the free limit (five free transactions a month if you live in non-metros), your bank will charge you Rs 23 per transaction, an increase of Rs 2 from the earlier charge of Rs 21. This rate applies whether you are withdrawing money or just checking your balance.
The Reserve Bank of India had earlier approved a hike in ATM interchange fees, raising cash withdrawal costs for customers from May 1, 2025.
“Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres,” RBI stated in a notification.
Key Changes to ATM Charges
Increased Fee: The maximum fee for ATM transactions beyond the free limit has risen from Rs 21 to Rs 23 per transaction. This applies to both financial (e.g., cash withdrawals) and non-financial transactions (e.g., balance inquiries) at ATMs and Cash Recycler Machines (CRMs), excluding cash deposits .
Free Transaction Limits:
Own Bank ATMs: 5 free transactions per month.
Other Bank ATMs:
Metro Cities: 3 free transactions per month.
Non-Metro Areas: 5 free transactions per month
Bank-Specific Updates
HDFC Bank: Charges Rs 23 plus applicable taxes for transactions beyond the free limit
Punjab National Bank (PNB): From May 9, 2025, charges Rs 23 for financial and Rs 11 for non-financial transactions beyond the free limit
IndusInd Bank: Applies a Rs 23 fee for transactions exceeding the free limit at non-IndusInd Bank ATMs
State Bank of India (SBI): Charges Rs 15 plus GST per transaction at SBI ATMs and Rs 21 plus GST at other bank ATMs after the free limit
ICICI Bank: Currently charges Rs 21 for financial and Rs 8.50 plus GST for non-financial transactions beyond the free limit; no updates announced yet
💡 Tips to Avoid Extra Charges
Plan Withdrawals: Consolidate cash needs to minimize ATM visits.
Use Digital Payments: Opt for UPI, net banking, or card payments when possible.
Monitor Transactions: Keep track of your monthly ATM usage to stay within free limits.
By staying informed and managing your ATM usage wisely, you can avoid incurring additional fees under the new RBI guidelines.
Impact on Residents of Guwahati and other towns in Assam
5 free transactions per month at your own bank’s ATMs
5 free transactions per month at other banks’ ATMs
Exceeding these limits will incur the new charges mentioned above
