New ATM transaction rules from May 1: SBI, BOB, HDFC, ICICI Bank notify new charges; check here

The Reserve Bank of India will now charge fees for ATM transactions which means, ATM users need to be now more concious of their upcoming transactions. The apex body has increased ATM charge fee, but in case the customer exceeds its free-limit. The fee has been increased to cover the cost of owning and maintaining ATMs as well as offering services to other banks’ customers. 

How much will the customers be charged?

The new rules will be effective from May 1, 2025, under which the customers will now have to pay an additional Rs 2 per transaction in case they exceed their free withdrawal limit. If the customers exceed the free monthly limit, they will be charged Rs 23 per transaction at ATMs, instead of Rs 21. 

The number of free ATM transactions differs from kind of states and banks. That is to say, customers will be allowed five free ATM transactions at their own-bank ATMs monthly. They will get three chances of free ATM transactions at other-bank ATMs located in metro cities and five free ATM transactions at other-bank ATMs located in non-metro cities. However, there will not be no restrictions or changes to the free transaction limits which are applied to those who hold savings accounts across banks in India. Earlier, customers were charged Rs 21 after they had exhausted their free withdrawal limit. The charge started applying from 2022. 

Banks notify changes to customers

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 also notified that at its ATMs, customers will be charged only after the free limit has been exceeded and non-financial transactions will be free. 

The PNB website read, “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.”