ATM cash withdrawal charges to increase from May 1: RBI's new ATM transaction rules take effect from today

From May 1, 2025, banks will apply the revised fee structure for the usage of automated teller machine (ATM) as directed by the Reserve Bank of India (RBI); this may make ATM withdrawals beyond the free limit costlier. The new guidelines focus on updating free transaction limits, revising charges for exceeding those limits, and modifying the structure of interchange fees. RBI periodically issues various instructions regarding the number of free ATM transactions and the maximum charges that can be levied on a customer beyond the mandatory free transactions.

IndusInd Bank raises FD interest rates on select tenures and Kotak Mahindra Bank reduces FD rate on select tenures

According to RBI's notification on March 28, 2025, "The ATM interchange fee will be as decided by the ATM network."

"Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1, 2025. Applicable taxes, if any, shall be additionally payable. These instructions shall also apply, mutatis mutandis, to transactions done at Cash Recycler Machines (other than for cash deposit transactions)," the notification says.

ATM withdrawals free limit

Customers are eligible for five free transactions (including financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (including financial and non-financial) at other bank ATMs-three transactions in metro centres and five transactions in non-metro centres, as per RBI guidelines.

What is an ATM interchange fee?

An ATM interchange fee is a charge that one bank pays to another for offering ATM services to customers. Banks often pass on these charges to users as part of their banking costs. For instance, if you are an HDFC Bank customer and use an SBI ATM to withdraw money and reside in Delhi, HDFC Bank will charge you if you make the fourth transaction in a month at an SBI ATM as an HDFC Bank customer.

Free ATM transaction limits from May 1, 2025

RBI has clarified the number of free ATM transactions a customer can make each month, distinguishing between own bank ATMs and those operated by other banks:

• In metro cities, customers can make up to three free transactions per month.
• In non-metro, the limit is set at five free transactions per month.

Revised charges for exceeding free limits from May 1, 2025

If customers exceed their monthly free transaction limits, banks are permitted to charge a maximum of Rs 23 per transaction. This cap applies to both financial and non-financial transactions. In addition, applicable taxes will be charged separately.

Banks that have notified the changes

HDFC Bank ATM charges from May 1, 2025

According to HDFC Bank's website, "With effect from May 1, 2025, ATM transaction charges beyond the free limit of Rs 21 + taxes would be revised to Rs 23 + taxes, wherever applicable."

PNB ATM charges from May 1, 2025

According to PNB's website, "It is to inform that the customer charges for over and above free transactions on other banks' ATMs are revised to Rs 23/- per financial transaction and Rs 11/- per non-financial transaction (excluding GST) w.e.f. 09.05.2025."

IndusInd Bank ATM charges from May 1, 2025

According to IndusInd Bank's website, "All savings/salary/NR/current account customers will be charged Rs 23 per transaction for ATM cash withdrawals made at non-IndusInd Bank ATMs, beyond the free limits, effective May 1, 2025."

SBI Bank ATM charges from May 1, 2025

SBI Bank is yet to update its ATM charges. Once you have used up your monthly quota of free ATM transactions, SBI will charge you Rs 15 + GST per transaction at SBI ATMs, regardless of your location. If you use other banks’ ATMs, the charge is higher—Rs 21 + GST per transaction, across all areas, including metro cities.

ICICI Bank ATM charges from May 1, 2025

ICICI Bank has not yet announced any changes to its ATM fee structure after the free transaction limit. Currently, customers are allowed five free ATM transactions per month, which include both financial and non-financial transactions. After exceeding this limit, the bank charges Rs 21 for each financial transaction and Rs8.50 plus applicable GST for each non-financial transaction.

Yes Bank ATM charges from May 1, 2025

The first 5 transactions per month are free; thereafter, financial transactions are charged at Rs 23 each, and non-financial transactions at Rs 10 each.

Latest ATM withdrawal charges of SBI, HDFC Bank, YES Bank, PNB and IndusInd Bank