RBI New ATM Charges from May 1: How Many Free Transaction Limits Are Allowed?

Starting May 1, 2025, the Reserve Bank of India (RBI) will implement new rules for ATM transactions. You will be charged at a higher rate per transaction when you make an ATM withdrawal beyond limit.

How Many Free ATM Transactions are Allowed?

Customers will now be entitled to 3 free ATM transactions per month in metropolitan cities and 5 in non-metropolitan areas. These include both financial and non-financial transactions, as per news reports.

Updated ATM Charges Beyond Free Limit

Once the free monthly limit is exceeded, banks can charge up to ₹23 per transaction, plus applicable taxes. This fee applies to both financial and non-financial activities across all ATMs, including Cash Recycler Machines (CRMs)—except for cash deposits, which remain free.

Bank-specific ATM Changes

Several major banks have started informing customers:

HDFC Bank

₹23 + taxes for cash withdrawals beyond the free limit at its own ATMs; non-financial transactions remain free at HDFC ATMs only.

Punjab National Bank (PNB)

From May 9, 2025, charges will be ₹23 for financial transactions and ₹11 for non-financial ones at other banks’ ATMs.

IndusInd Bank

All customer categories (Savings, Salary, NRI, Current) will face ₹23 charges for cash withdrawals at non-IndusInd ATMs beyond free limits.

Customer Advisory

Customers should note:

• Track ATM usage to avoid additional charges.

• Limit usage at other banks’ ATMs, especially in metro areas.

• Be aware that CRMs also incur charges except for cash deposits.

Context and Trends

The move aims to optimise ATM operations and promote digital banking alternatives.

RBI data reveals a steady decline in ATM withdrawals:

• Jan 2023: 57+ crore transactions

• Jan 2024: 52.72 crore

• Jan 2025: 48.83 crore

Despite this trend, cash remains a critical part of India’s economy. The 2021 revision of fees contributed to expanding the country’s ATM infrastructure.

Please note that;

• Micro-ATMs, interoperable cash deposits, and international ATM transactions are excluded from the updated charges.

• NPCI’s new communication outlines balance inquiry fees in Nepal and Bhutan, excluding GST.

Conclusion

The RBI’s updated framework seeks to balance ATM maintenance costs for banks with customer transparency, while nudging users toward digital payment systems.

Read more on: RBI Allows Children Aged 10 and Above to Open and Operate Bank Accounts

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