RBI Updates ATM Fees: New Fees Take Effect on May 1

ATM Withdrawal Fees Updated by RBI, Changes Begin May 1

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: April 29, 2025

Summary: ATM transaction charges will increase from May 1. As per the new RBI guidelines, customers surpassing free transaction limits will be charged ₹23 per transaction.

Customers who exceed their monthly free transaction limit will have to pay extra charges as per the revised ATM transaction regulations, effective on May 1, 2025.

Under the new guidelines, customers will only get a limited number of free ATM transactions each month: three in metropolitan areas and five in non-metropolitan regions. These free transactions encompass both financial activities, like cash withdrawals, and non-financial ones, such as balance inquiries.

Banks can charge up to ₹23 per transaction, including taxes, if the free transaction limit is exceeded. Cash deposit transactions are exempted, however, the updated fee structure covers both financial and non-financial transactions made at ATMs and Cash Recycler Machines (CRMs).

Many major banks have already notified their clients about the changes, including Kotak Mahindra Bank, Punjab National Bank (PNB), and HDFC Bank. HDFC Bank has announced that, as of May 1, 2025, the fee for ATM transactions over the free limit will be changed from ₹21 plus taxes to ₹23 plus taxes.

The RBI is making these changes as part of its initiatives to promote digital financial services and limit the ATM usage. Consumers are urged to keep a careful eye on how much they spend at ATMs in order to prevent extra fees and to think about using digital banking for their financial activities.