Big Change in ATM Transaction Charges From 1st May 2025, Check How It Will Impact Your Pocket

From 1st May 2025, ATM withdrawal rules are being changed by RBI. After crossing the free monthly transaction limit at ATM, customers will now pay higher amount for each additional transaction.

What are ATM transaction charges?

It refers to the charges taken from customers by banks for doing the transaction at Automated Teller Machine (ATM) beyond free transactions in a month. The charges can be for cash withdrawal, balance enquiry, and other ATM services at own-bank ATMs as well as other-bank ATMs.

Monthly free ATM transaction limit as per new rules by RBI

• 5 at own-bank ATMs

• 3 at other-bank ATMs in metro cities and 5 in non-metro cities

Note: These free transaction limits include both cash withdrawal transaction and other transactions such as balance enquiry or mini-statement request.

Big Change in ATM Transaction Charges From 1st May 2025

Customers are currently being charged ₹21 per transaction after free limit. It is changed to ₹23 per transaction from 1st May 2025 and is applicable for savings accounts holders across India. These charges are exclusive of GST.

Reason of increased ATM transaction charges

• Banks can cover its rising costs

• Banks can maintain its ATMs

• To upgrade security systems

• Banks can offer better services to customers

• To promote digital transactions

Updates from different banks

• HDFC bank stated that only cash withdrawals beyond the free limit will attract charge and other transactions at its ATMs will be free from 1st May 2025.

• PNB will charge ₹23 for cash withdrawal and ₹11 for other transactions at other banks’ ATMs from 9th May 2025.

How will new ATM transaction charges impact your pocket?

The increased ATM transaction charges will mainly impact to those customers who are more dependent on ATMs for cash withdrawals to do payment of any good or service. These customers are generally less educated and do not know how to use digital payments. This will slightly increase monthly expenses for the customers as they will pay higher charges for each transaction after free limit.

What alternatives do customers have now?

• Plan ATM transactions carefully

• Withdraw higher amount every time

• Use digital modes like UPI