Starting May 1, 2025, ATM users across India will face revised transaction charges as the Reserve Bank of India’s (RBI) updated fee framework comes into effect.
The changes, applicable to both financial and non-financial transactions, aim to streamline ATM usage charges and encourage digital banking.
Under the new rules, customers in metropolitan cities will get three free ATM transactions per month, while those in non-metro areas will get five. These free transactions include both cash withdrawals and balance checks.
Once this limit is exceeded, banks can charge up to Rs 23 per transaction, excluding taxes.
This applies to transactions at ATMs and Cash Recycler Machines (CRMs), though cash deposits at CRMs remain free.
Many major banks have already updated their customer policies:
HDFC Bank said, “With effect from 1st May 2025, the ATM transaction charge rate beyond free limits will be revised from Rs 21 + taxes to Rs 23 + taxes.” The bank also clarified that only cash withdrawals at HDFC Bank ATMs beyond the free limit will attract charges, while non-financial transactions remain free. However, at other banks’ ATMs, both types of transactions count toward the free limit.Punjab National Bank (PNB) will implement its new structure from May 9, charging Rs 23 forfinancial transactions and Rs 11 for non-financial ones, excluding GST.IndusInd Bank has confirmed it will charge Rs 23 per transaction for ATM cash withdrawals at non-IndusInd ATMs beyond free limits for Savings, Salary, NRI, and Current Account holders.
These revisions are tied to a broader decision taken in March 2024, when the National Financial Switch Steering Committee and NPCI approved increasing the interchange fee for financial ATM transactions to Rs 19 and non-financial to Rs 7.
These fees are charged between banks but could indirectly affect customers.
According to RBI data, ATM usage has dipped significantly, from over 57 crore withdrawals in January 2023 to 48.83 crore in January 2025. Yet, ATM infrastructure continues to grow.
India had 2,16,706 ATMs as of January 2025 and cash still plays a major role in the economy.
What customers should keep in mind:
- Track ATM usage closely, especially in metro cities.
- Understand that Rs 23 (plus GST) is the maximum fee once free limits are crossed.
- Charges apply at CRMs too, except for cash deposits.
- These changes do not apply to Micro-ATMs, interoperable cash deposits, or international ATM use.
With banks pushing digital channels, this update aims to balance cost recovery with improving access.
