ATM withdrawal just got costlier: What changes from May 1 and how it affects you

Starting today, withdrawing cash from ATMs—or even just checking your balance—might cost you more. The Reserve Bank of India’s (RBI) revised guidelines have come into effect from May 1, 2025, increasing the maximum fees banks can charge customers once they exhaust their monthly quota of free ATM transactions.

Whether it’s a cash withdrawal, PIN change, or mini statement, every extra swipe beyond your free limit could now pinch your pocket a bit harder.

What’s changing from May 1?

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The RBI’s updated circular allows banks to hike charges for ATM usage beyond the free limit. The fee cap has increased from ₹21 to ₹23 per transaction (plus GST), applicable on both financial (like cash withdrawals) and non-financial (like balance checks or PIN changes) transactions. These new rates are applicable across all banks and ATM operators.

So whether you’re pulling out cash for groceries or just checking your balance after online shopping, expect to pay ₹2 more per extra transaction if you’ve crossed your monthly limit.

How many free ATM transactions do you still get?

While the charges have gone up, the RBI has not changed the number of free monthly transactions:

• At your own bank’s ATMs: 5 free transactions/month (both financial and non-financial).
• At other banks’ ATMs:
• Metro cities: 3 free transactions/month.
• Non-metro cities: 5 free transactions/month.

These limits include both types of transactions.

Why have ATM charges been increased?

According to the RBI, the revision aims to align customer charges with rising costs—such as ATM security, cash handling, maintenance, and software upgrades. Banks and ATM operators have long been lobbying for a hike, citing higher operating expenses.

The move is also intended to promote digital payments, especially in rural and semi-urban areas where mobile-based and MicroATM services are gaining traction.

Banks have already notified customers – Here’s what’s changing

Several leading banks have revised their ATM fee structures effective May 1, 2025. This includes HDFC Bank, Punjab National Bank (PNB), IndusInd Bank, and Kotak Mahindra Bank. Customers at these banks will now pay more for both financial and non-financial ATM transactions once they exhaust their monthly free limits.

• HDFC Bank has raised its post-limit fee from ₹21 to ₹23 (plus GST) for all transactions.
• PNB will charge ₹23 for financial and ₹11 for non-financial transactions (earlier ₹21 and ₹10 respectively); changes come into effect from May 9.
• IndusInd Bank has adopted a flat ₹23 (plus GST) fee beyond the free quota.
• Kotak Mahindra Bank now charges ₹23 for financial transactions (up from ₹21) and ₹10 for non-financial ones (up from ₹8.5).

Meanwhile, State Bank of India (SBI) revised its ATM fee structure earlier this year on February 1, 2025. It also standardized free usage across metro and non-metro areas—5 free transactions at SBI ATMs and 10 at other bank ATMs for most customers. Beyond this:

• Financial transactions cost ₹15 at SBI ATMs and ₹17 at other bank ATMs.
• Non-financial transactions are free at SBI ATMs, but ₹10 per transaction at other banks’ ATMs.

Bank

Old Charges (Before May 1)

New Charges (Effective May 2025)

HDFC Bank

₹21 + GST (All transactions)

₹23 + GST (All transactions)

PNB

₹21 (fin), ₹10 (non-fin) + GST

₹23 (fin), ₹11 (non-fin) + GST (Effective May 9)

IndusInd Bank

₹21 + GST (All transactions)

₹23 + GST (All transactions)

Kotak Mahindra Bank

₹21 (fin), ₹8.5 (non-fin)

₹23 (fin), ₹10 (non-fin)

SBI (Revised Feb 1)

₹15 (fin) SBI ATM, ₹17 (fin) other ATM, ₹0–₹10 (non-fin)

₹15 (SBI ATM), ₹17 (other bank ATM), ₹10 non-fin (other ATM)

What’s the interchange fee—and why it matters

The interchange fee is the charge your bank pays to the bank that owns the ATM you use. For instance, if you use an HDFC debit card at an SBI ATM, HDFC pays SBI. While customers don’t pay this directly, it influences what banks charge after the free limit.

As of now, interchange fees remain unchanged:

• ₹17 for financial transactions
• ₹6 for non-financial transactions

However, this may be reviewed by ATM networks or the RBI in the future.

Are CRM machines affected too?

Yes, but with a catch. Cash deposits at Cash Recycler Machines (CRMs) remain free. However, if you withdraw money or check your balance at a CRM after crossing your free limit, the ₹23 + GST charge applies—just as it would at a regular ATM.