ATM charges to rise from May 1; RBI limits free transactions
Mumbai: Starting May 1, 2025, new rules set by the Reserve Bank of India (RBI) will revise the number of free ATM transactions customers are entitled to each month, and increase the maximum fee banks can charge once that limit is exceeded.
According to the RBI notification, "Customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs. They are also eligible for free transactions (inclusive of financial and non-financial transactions) from other bank ATMs viz. three transactions in metro centres and five transactions in non-metro centres."
Once the free transaction cap is breached, banks will be allowed to levy a fee of up to ₹23 per transaction, a hike from the current ₹21.
This revised rate applies to both financial transactions—such as cash withdrawals—and non-financial ones like balance inquiries or mini-statements.
The RBI clarified that these charges will also apply at Cash Recycler Machines (CRMs), except for cash deposits.
The number of free transactions a customer receives from other bank ATMs will depend on their location.
Those in metro cities will get three free transactions per month, while residents of non-metro areas will continue to get five.
Several banks, including HDFC Bank, Punjab National Bank (PNB), and IndusInd Bank, have already begun notifying customers about the changes.
HDFC Bank stated, “With effect from 1st May 2025, ATM transaction charge rate beyond free limit of Rs 21, along with taxes would be revised to Rs. 23 + taxes, wherever applicable.”
It further clarified, “For transactions at HDFC Bank ATMs, only cash withdrawal transactions will be considered for charging. Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change) will be free.”
The bank also confirmed that ATM transactions conducted in cities like Mumbai, New Delhi, Chennai, Kolkata, Bengaluru, and Hyderabad will be classified under the metro category.
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