The Reserve Bank of India (RBI) has issued a revised framework for ATM transaction charges across the country. The new framework is effective from May 1, 2025. The updated guidelines aim to revise free transaction limits, adjust charges for exceeding those limits, and modify the structure of interchange fees.
The RBI’s new move is part of its efforts to make customer charges more transparent and give ATM networks more flexibility. Meanwhile, banks like HDFC Bank, PNB, Kotak Mahindra, and others have already informed their customers about the revised charges for exceeding free ATM transaction limits.
Customers will now incur an additional charge of Rs 2 per transaction after exceeding their free withdrawal limit. Once the free monthly limit is crossed, ATM transactions will cost Rs 23 each, up from the current Rs 21.
However, the number of free transactions remains unchanged and continues to apply to savings account holders across all banks in India. Earlier, customers were charged Rs 21 per transaction beyond the free limit, a rate introduced in 2022.
Customers are entitled to five free ATM transactions per month at their own-bank ATMs. Additionally, they can avail three free transactions per month at other-bank ATMs in metropolitan cities and five free transactions at other-bank ATMs in non-metropolitan cities.
According to HDFC Bank, “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, wherever applicable.” The bank clarified that at HDFC Bank ATMs, only cash withdrawals beyond the free limit will incur charges, while non-financial transactions remain free.
According to the PNB website, “It is to inform that the customer charges for over and above free transactions on other Banks’ ATMs are revised as Rs.23/- per financial transaction and Rs. 11/- per non-financial transaction (excluding GST) w.e.f. 09.05.2025.”
According to the IndusInd website, “All the Savings/Salary/NR/Current Account customers will be charged INR 23 per transaction for ATM Cash withdrawal made at Non-IndusInd Bank ATMs, beyond free limits, effective 1st May 2025.”
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