• Source:JND
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ATM Charges Revised: Starting 1 May 2025, customers using ATMs across India will be charged up to Rs 23 per transaction after crossing their monthly free transaction limit, as per the latest announcement by the Reserve Bank of India (RBI). The current charge of Rs 21 is being revised under the new framework.

This rule applies to both financial and non-financial transactions. The new charges aim to regulate ATM usage and encourage customers to shift towards digital banking. The updated guideline is valid for all banks, including commercial, co-operative and regional rural banks, as well as authorised ATM network operators and white-label ATM providers.

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New Rules For Free Transactions

According to the RBI, customers will continue to get five free ATM transactions per month at their own bank’s ATMs. In metro cities, they are also allowed three free transactions at ATMs of other banks. In non-metro cities, five free transactions from other bank ATMs will be permitted, apart from the five from their own bank.

Once the free limit is exhausted, every additional transaction, whether it is cash withdrawal, balance enquiry, or PIN change, it will attract a fee of Rs 23 plus applicable taxes. These charges also apply to transactions done at Cash Recycler Machines (CRMs), except for cash deposits.

Impact On Interchange Fees

The RBI clarified that the ATM interchange fee, which is paid by one bank to another when a customer uses a different bank’s ATM, will continue to be managed by the network. At present, banks pay Rs 19 for financial and Rs 7 for non-financial transactions to each other.

This change follows approvals given by the National Financial Switch Steering Committee and NPCI in March 2024 to revise interchange fees, which indirectly impact customers when their banks recover costs.

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Banks Update Charges

According to a Times Of India report, banks like HDFC, PNB and IndusInd have already announced the new fee structure. HDFC Bank will charge Rs 23 plus taxes for cash withdrawals beyond free limits at its ATMs. Non-financial transactions at HDFC ATMs will remain free. PNB will introduce its revised charges on May 9, setting Rs 23 for financial and Rs 11 for non-financial transactions. IndusInd Bank will also charge Rs 23 per transaction beyond limits at non-IndusInd ATMs.

Though ATM usage has slightly declined in recent years, India still has over 2.16 lakh ATMs. With digital payments growing, the RBI aims to ensure fair cost recovery while continuing to provide cash access.