New ATM Charges Effective May 2025: Withdrawing cash from ATMs just got costlier. The Reserve Bank of India (RBI) has revised ATM transaction charges after the free monthly limit, impacting millions of bank customers. Effective May 1, 2025, the charge for each transaction beyond the free limit has increased from ₹21 to ₹23.

This hike affects customers who regularly use ATMs beyond the permitted number of free monthly transactions, adding extra pressure on frequent users' wallets.

🏦 Free ATM Transactions—No Change in Limit

RBI has not changed the number of free ATM transactions allowed per customer each month. Here’s a quick look at what you still get:

• Own Bank ATM: 5 free transactions (includes financial + non-financial)

• Other Bank ATMs – Metro Cities: 3 free transactions

• Other Bank ATMs – Non-Metro Cities: 5 free transactions

These rules apply to all savings account holders across all Indian banks.

💳 Updated ATM Charges: Bank-wise Breakdown

Let’s look at how the new RBI directive has been implemented by major banks:

🏦 Punjab National Bank (PNB)

• Own ATM (after free limit): ₹10 + GST

• Other Bank ATMs in Metro Cities: ₹23 + GST (financial), ₹11 + GST (non-financial)

• Other Bank ATMs in Non-Metro Cities: ₹11 + GST (non-financial)

• Effective Date: May 9, 2025

🏦 HDFC Bank

• Own ATM (after free limit): ₹23 + GST for cash withdrawals only

• Other Bank ATMs: ₹23 + GST for both financial & non-financial transactions

• Non-financial services (like balance checks, PIN change) remain free at HDFC ATMs

• Effective Date: May 1, 2025

🏦 IndusInd Bank

• Applies to Savings, Salary, NR, and Current Account Holders

• Non-IndusInd Bank ATMs (after free limit): ₹23 per cash withdrawal

• The hike aligns with RBI’s new limit

🏦 State Bank of India (SBI)

• Own ATM: 5 free transactions/month

• Other Bank ATMs:

  • AMB ₹25,000–₹1 lakh: 5 free transactions

  • AMB above ₹1 lakh: Unlimited free transactions at all ATMs

• Charges After Free Limit:

  • SBI ATM: ₹15 + GST

  • Other Bank ATM: ₹21 + GST

• Effective Date: Already in place from February 1, 2025

🏦 ICICI Bank

• 5 free ATM transactions per month

• After Free Limit:

  • Financial Transactions: ₹21

  • Non-Financial Transactions: ₹8.50 + GST

• Note: Revised ₹23 charges not yet officially implemented; customers should stay updated.

📌 Who Will Be Most Affected?

Customers who:

• Frequently withdraw small amounts multiple times a month

• Do not maintain a high average monthly balance (AMB)

• Depend on non-home bank ATMs in metro cities

Such users may end up paying higher cumulative charges monthly if they exceed their transaction limits.

✅ What You Can Do

• Use digital banking (UPI, mobile wallets) where possible

• Plan bulk withdrawals instead of multiple small ones

• Monitor your monthly ATM usage to avoid crossing the free limit

• Use own bank ATMs to maximize your free transactions

🧾 Final Thoughts

The RBI’s decision to increase the ATM fee cap reflects rising operational and maintenance costs for ATM networks. While the number of free transactions remains the same, the per-transaction cost beyond that now stands at ₹23 + GST, making it crucial for customers to track usage and avoid unnecessary fees.

Stay informed and make the most of your free limits to minimize banking costs.

Tags: ATM Charges 2025, RBI New Rules, HDFC ATM Fees, SBI ATM Charges, ICICI ATM Update, PNB Transaction Limit, IndusInd Bank Fees, RBI ATM Withdrawal Fee Hike, Free ATM Transactions India