ATM Transaction Charges from 1 May 2025: How It Impacts Your Wallet

ATM Transaction Charges From 1 May 2025: From May 1, 2025, withdrawing cash from ATMs in India will get slightly more expensive. The Reserve Bank of India ( RBI ) has allowed banks to increase ATM transaction charges from Rs 21 to Rs 23 per withdrawal after customers exhaust their free monthly limits. This revision, applicable to all savings account holders across the country, comes amid growing costs for maintaining ATM infrastructure and enhancing security.

Here’s a detailed breakdown of the new rules, free transaction limits, updated fees, and what they mean for you.

New ATM Withdrawal Charges from May 1, 2025
In its notification dated March 28, 2025, the RBI stated: “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.”

The new fee is applicable to both own-bank and other-bank ATMs, and also extends to Cash Recycler Machines (excluding cash deposits). The increased charge replaces the earlier Rs 21 fee implemented in 2022.
 

Read More 
RBI Allows Kids To Hold Bank Accounts – 5 Banks Offering Them & How You Can Open One - Details
 

Free Transaction Limits: No Change in Monthly Cap
Despite the hike in fees, the RBI has not altered the number of free ATM transactions allowed per month. These include both financial (cash withdrawals) and non-financial transactions (like balance inquiries, mini statements, PIN changes):
5 free transactions per month at own-bank ATMs
3 free transactions at other-bank ATMs in metro cities
5 free transactions at other-bank ATMs in non-metro cities

This means customers in metros like Delhi, Mumbai, and Bengaluru can make up to 8 free ATM transactions per month (5 at own bank + 3 at others), while those in non-metros get 10 free transactions.

Why Have the Charges Been Increased?
The RBI has permitted this fee revision to help banks manage the rising cost of ATM operations. This includes maintenance expenses, security system upgrades, and overall infrastructure.

How Banks Are Responding to the Change
Multiple banks have already updated their websites to reflect the revised charges:

HDFC Bank
"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." – HDFC Bank 
 

Punjab National Bank (PNB)
“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.” – PNB 

IndusInd Bank
"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." – IndusInd Bank 

What Are ATM Withdrawal Charges?
ATM withdrawal charges are fees imposed by banks when a customer exceeds the number of free ATM transactions in a month. These fees apply not only to cash withdrawals but also to non-financial services like checking balance or generating a mini statement. The newly approved Rs 23 charge includes only financial transactions, while some banks charge additional amounts for non-financial ones too.

Tips to Avoid Extra Charges
To manage your banking costs smartly:
Plan your ATM visits to reduce the number of withdrawals
Use digital payment modes like UPI, net banking, or card payments
Withdraw larger amounts less frequently instead of making small, frequent withdrawals
Keep track of the number of transactions made each month

Starting May 1, 2025, ATM transaction charges in India will rise to Rs 23 per cash withdrawal beyond the free monthly quota. While the free transaction limits remain unchanged, savings account holders across all banks should stay alert to avoid incurring extra fees.