ATM Transaction Charges from 1 May 2025: What Changes for You

From May 1, 2025, ATM withdrawals in India will increase from Rs 21 to Rs 23 due to a new interchange fee set by the Reserve Bank of India. Customers will pay this fee after the transaction. 

The RBI's notification on March 28, 2025, states that customers will be charged Rs 23 per transaction for exceeding free translation limits, starting May 1. 

Despite the price hike, financial and non-financial transactions remain the same, i.e., five free transactions per month at one's bank and non-metro cities and three fee transactions on other banks in the cities.  

The increased charges result from ATM operators and service providers raising operational costs. In 2021, it was to keep up with inflation.  

The interchargeable fee is applied to both own-bank and other-bank ATMs and extends to cash recycler machines. The increased charge replaces the earlier Rs 21 fee implemented in 2022. 

"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. 

“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  

"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.  

The interchange fee is a bank’s charge to the ATM operator when a customer withdraws cash from another ATM. This charge is passed on to the customer after exceeding the free limit.  

Tips to avoid charges are tracking your transactions, using your bank’s ATM, going digital, and using minimum withdrawals to save on transaction fees.