)
Starting May 1, 2025, the Reserve Bank of India (RBI) has revised the ATM cash withdrawal charges across all banks. Under the new guidelines, customers will now be charged a maximum of Rs 23 per transaction after exceeding their monthly free ATM transaction limit. Previously, the cap was Rs 21. These changes apply to all commercial banks, regional rural banks, co-operative banks, and white-label ATM operators. Importantly, the free transaction limits remain unchanged—five free transactions at own-bank ATMs, three at other-bank ATMs in metro cities, and five in non-metro areas.
HDFC Bank has aligned its charges with the new RBI framework. Customers can continue to enjoy five free ATM transactions per month at HDFC Bank ATMs. Once this limit is exceeded, a fee of Rs 23 plus applicable taxes will be levied for each additional cash withdrawal. This change reflects the industry-wide update from the earlier Rs 21 per transaction. Non-financial transactions such as checking balance, mini statements, or PIN changes remain free of charge, even after the limit is crossed.
State Bank of India (SBI) implemented its revised ATM transaction charges earlier, on February 1, 2025. All SBI savings account holders receive five free ATM transactions at SBI ATMs every month. Additionally, depending on their average monthly balance (AMB), they may be eligible for more free transactions at other bank ATMs. For example, customers with an AMB between Rs 25,000 and Rs 1 lakh get five free transactions at other bank ATMs, while those maintaining over Rs 1 lakh enjoy unlimited free transactions. Beyond the free limits, SBI charges Rs 15 plus GST at its own ATMs and Rs 21 plus GST at other bank ATMs.
ICICI Bank has also adjusted its ATM charges in line with the RBI's announcement. The bank offers five free transactions per month, which includes both financial and non-financial transactions at ICICI Bank ATMs. After the free limit is exceeded, customers are charged Rs 21 for each additional financial transaction. For non-financial transactions, such as balance enquiries, the bank levies a charge of Rs 8.50 plus applicable GST per transaction.
IndusInd Bank customers now face updated charges for ATM withdrawals. Once the free monthly limit is exhausted, a fee of Rs 23 per financial transaction is applicable at non-IndusInd Bank ATMs. This move is consistent with the broader trend across the banking industry, which is responding to rising operational costs. The bank continues to offer standard free transaction limits, as mandated by RBI, before applying the new charges.
Punjab National Bank has also revised its ATM transaction charges in accordance with RBI's updated policy. Starting May 9, 2025, customers will be charged Rs 23 per financial transaction and Rs 11 per non-financial transaction (excluding GST) at other banks' ATMs once the free limits are exhausted. These changes aim to standardize ATM transaction charges across the banking sector while ensuring customers are informed about the potential costs of exceeding their monthly quota.
With the increase in post-limit ATM charges, customers are encouraged to manage their ATM usage more efficiently. Opting for digital banking options like UPI, internet banking, and mobile apps can help minimize the need for cash withdrawals. Understanding your bank’s specific ATM fee structure and maintaining the required balance to access higher free transaction limits can help you avoid unnecessary charges and make smarter financial decisions.
Newsletter
