The Reserve Bank of India (RBI) has introduced a revised framework for ATM transaction charges, effective from May 1, 2025. The changes are aimed at enhancing transparency in customer charges and providing more operational flexibility to ATM networks. Major banks like HDFC Bank, Punjab National Bank (PNB), and Kotak Mahindra have already communicated these revisions to their customers.
Revised ATM Transaction Limits and Charges Effective May 1, 2025
Under the new rules, the number of free ATM transactions per month has been redefined. In metro cities, customers will be allowed three free transactions per month, while those in non-metro areas will receive five. These limits include both financial and non-financial transactions and apply to both own-bank and other-bank ATMs.
For transactions exceeding the free limits, banks can now charge up to Rs 23 per transaction, applicable to both financial and non-financial activities. Additional applicable taxes will be levied on top of this charge. These revised charges will also be applicable to transactions at Cash Recycler Machines (CRMs), though cash deposits are excluded from these fees.
Bank-Wise ATM Charge Revisions and Customer Guidelines Effective May 2025
Bank-specific changes include HDFC Bank raising its per-transaction fee beyond the free limit from Rs 21 to Rs 23, plus taxes. At HDFC ATMs, only cash withdrawals will be chargeable, while non-financial transactions like balance enquiry and PIN changes will remain free. At non-HDFC ATMs, both financial and non-financial transactions beyond the free limit will attract charges.
PNB has also updated its fee structure, setting Rs 23 for financial and Rs 11 for non-financial transactions (excluding GST) beyond the free limit at other banks’ ATMs, effective May 9, 2025. Similarly, IndusInd Bank will charge Rs 23 per cash withdrawal at non-IndusInd Bank ATMs beyond the free usage limit starting May 1, 2025. Customers are advised to monitor their ATM usage, especially in metro areas, and stay aware of the revised charges and limits. It is also important to remember that these new rules extend to CRMs, except for cash deposit transactions.
Summary:
The RBI has revised ATM transaction rules effective May 1, 2025, limiting free transactions and capping excess charges at Rs 23. Major banks like HDFC, PNB, and IndusInd have updated their fee structures. The changes also apply to CRMs, excluding cash deposits, urging customers to track ATM usage closely.
