The Reserve Bank of India (RBI) has announced a revised framework for ATM transaction charges across the country, set to take effect from May 1, 2025. The updated norms include changes to free transaction limits, interchange fee structures, and charges for exceeding free limits, in a bid to promote transparency while allowing operational flexibility for ATM networks.
According to the RBI, customers in metro cities will be entitled to three free ATM transactions per month, while those in non-metro areas can avail five free transactions monthly. This applies to a combination of financial and non-financial transactions across both own bank and other bank ATMs.
Revised Charges Beyond Free Limits
From May 1, customers exceeding their monthly free ATM transaction limits may be charged up to Rs 23 per transaction, applicable to both financial (e.g., cash withdrawals) and non-financial (e.g., balance enquiry, mini statement) transactions. Taxes will be levied over and above the transaction fee. These charges are also applicable to Cash Recycler Machines (CRMs), except for cash deposit transactions.
Bank-wise Implementation
HDFC Bank:
From May 1, HDFC Bank will revise charges from Rs 21 to Rs 23 + taxes per transaction beyond free limits. At HDFC ATMs, only cash withdrawals will count toward chargeable limits, while non-financial services like balance enquiry and PIN changes will remain free. At non-HDFC ATMs, both financial and non-financial transactions will be counted.
Punjab National Bank (PNB):
Effective May 9, 2025, PNB will charge Rs 23 per financial transaction and Rs 11 per non-financial transaction (excluding GST) once customers exceed the free limit on other bank ATMs.
IndusInd Bank:
Starting May 1, IndusInd Bank customers will be charged Rs 23 per cash withdrawal at non-IndusInd ATMs once the free limit is crossed, applicable to all account types including Savings, Salary, NRI, and Current Accounts.
What Customers Should Keep in Mind
- Monitor monthly ATM usage to avoid incurring additional charges.
- Understand the difference in treatment of transactions at own vs. other bank ATMs.
- Take note of the Rs 23 cap and applicable GST.
- Be aware of non-financial transactions also counting towards the limit in many cases.