New ATM Transaction Rules from May 1, 2025: SBI, HDFC, ICICI, BOB Announce Revised Charges
Starting May 1, 2025, major Indian banks including SBI, HDFC, ICICI, and BOB will implement revised ATM transaction charges as per updated guidelines from the Reserve Bank of India (RBI). This change will impact millions of customers who frequently use ATMs for cash withdrawals beyond their monthly free limit.
Why the Charges Are Increasing
The RBI has authorized banks to raise ATM transaction charges in a move aimed at covering the rising cost of ATM maintenance and service provision to third-party bank customers.
- The fee hike compensates for infrastructure upkeep, technology upgrades, and cross-bank ATM usage.
- These changes reflect a broader trend of increasing transaction management costs across financial institutions.
Customers are advised to monitor ATM usage closely to avoid unnecessary charges.
New ATM Withdrawal Charges from May 1
If users exceed their free transaction limit, they will now be charged Rs 23 per transaction, up from the previous Rs 21, as per the new RBI rule.
- This includes both on-bank and off-bank ATM withdrawals, depending on limits.
- Charges apply only after crossing the prescribed free usage quota.
Here is a breakdown of the new ATM fee structure:
- Rs 23 per cash transaction beyond free limit (excluding taxes)
- Applies to savings, salary, and current account holders
- Non-financial transactions (such as balance enquiry or mini statements) remain free at home bank ATMs
Free Transaction Limits: What’s Still Free
While the fee per excess transaction has increased, the number of free transactions per month remains unchanged.
- 5 free ATM transactions per month at your bank’s ATMs across India
- 3 free transactions at other-bank ATMs in metro cities
- 5 free transactions at other-bank ATMs in non-metro cities
These limits apply to savings account holders only, ensuring essential banking access remains affordable for the general public.
Bank-Specific Updates on ATM Charges
Leading banks have already issued formal updates to their customers:
- HDFC Bank: “ATM charges beyond free limits revised to Rs 23 + taxes from May 1, 2025,” with non-financial ATM uses remaining free at home ATMs.
- Punjab National Bank (PNB): “Revised charges of Rs 23 per financial transaction and Rs 11 for non-financial at other banks’ ATMs effective May 9, 2025.”
- IndusInd Bank: Customers will be charged INR 23 per transaction at non-IndusInd ATMs after free limits. Applies to savings, salary, NR, and current account holders.
Other banks like SBI, ICICI, and Bank of Baroda (BOB) are expected to follow similar structures, aligning with RBI’s directive.
What Customers Should Do Now
To avoid extra charges, customers are advised to track their ATM usage and use digital payment methods when possible.
- Consider withdrawing larger sums less frequently to minimize ATM visits.
- Opt for net banking, UPI, or mobile wallets for routine transactions.
- Use home bank ATMs as much as possible to stay within free limits.
Planning withdrawals and tracking usage can help customers save on added fees every month.
Final Thoughts
The RBI’s revised ATM transaction rules reflect a growing emphasis on digital banking efficiency and cost recovery by financial institutions. While charges have slightly increased, the number of free transactions remains unchanged, allowing users to plan their cash needs more efficiently. Stay informed and manage your ATM usage to avoid unnecessary deductions.
