From ATM fees to PAN card rules, here’s what changes from July 1

From 1 July, a raft of new financial rules has come into force across India, reshaping everyday transactions for millions. Major banks are hiking ATM fees, Aadhaar is now mandatory for new PAN card applications, and the deadline for income tax return filing has been extended. Here is how these changes will affect you.

ATM withdrawals get costlier across all major banks

Customers of nearly every major bank will pay more for withdrawing cash this month. Following the RBI’s rules capping post-free ATM withdrawal fees at ₹23, banks have aligned their charges, but the number of free transactions and the exact fees after that limit vary.

State Bank of India (SBI) will charge ₹15 plus GST for every cash withdrawal at its own ATMs once the free limit is exhausted, and ₹21 plus GST at other banks’ ATMs. ICICI Bank customers get five free cash withdrawals per month at ICICI ATMs, after which each withdrawal will cost ₹23. For non-ICICI ATMs, metro city customers get three free transactions and non-metro users five; exceeding these limits will cost ₹23 per withdrawal and ₹8.5 for balance enquiries.

HDFC Bank has standardised its post-limit charge to ₹23 for all ATM withdrawals, whether on its own network or other banks’ machines. Axis Bank has raised its fee to ₹23 per transaction beyond the free monthly limit for all eligible account types, including savings, NRI, trust and Priority customers.

Kotak Mahindra Bank now charges ₹23 for each extra cash transaction beyond the free quota, while non-financial transactions cost ₹10. Yes Bank follows a similar model, with ₹23 per cash withdrawal and ₹10 for non-financial actions once free limits are used up. Punjab National Bank (PNB) is charging ₹23 for extra withdrawals and ₹11 for balance checks beyond the free limit.

Banks are advising customers to plan their cash needs more carefully, use their own bank’s ATM network wherever possible, and embrace digital payments to avoid these rising costs.

Aadhaar now compulsory for new PAN applications

From today, Aadhaar verification has become mandatory for anyone applying for a new PAN card. Until now, applicants could use other government-issued IDs such as a driving licence or birth certificate. The Central Board of Direct Taxes (CBDT) says this change is aimed at eliminating duplicate or fraudulent PAN cards and ensuring stricter identity verification.

Existing PAN holders have until 31 December this year to link their Aadhaar. Failure to do so may result in the PAN being deactivated, which could disrupt access to banking, tax filing, and other services.

ITR filing deadline extended

In a relief for taxpayers, the government has extended the deadline for filing income tax returns for salaried individuals. Instead of 31 July, taxpayers now have until 15 September to complete their filings. This 46-day extension aims to reduce last-minute rush and ease the load on the income tax e-filing portal, which often suffers from slowdowns and errors near deadline days.

Officials have still advised early filing to ensure faster processing of refunds and fewer technical issues.

Credit card fees and features see major revisions

Credit card users will also see new terms and charges this month. SBI is discontinuing its air accident insurance benefit, which was previously available on premium cards such as SBI Elite and Miles variants when used to buy air tickets. The bank is also revising the way it calculates the minimum amount due on monthly bills.

HDFC Bank is imposing a one per cent fee, capped at ₹4,999 per transaction, on rent payments, wallet loading over ₹10,000 in a single transaction, and spending more than ₹10,000 on online skill-based games. Utility bill payments over ₹50,000 a month using HDFC cards will also attract this fee, with insurance payments exempt.

ICICI Bank is revising its IMPS charges for online transfers, which will now range from ₹2.5 to ₹15 depending on the amount. The bank is also limiting free cash deposits at branches and cash recycler machines to three per month; extra deposits will cost ₹150 each. Cash deposits over ₹1 lakh a month will attract a fee of ₹150 or ₹3.50 per ₹1,000, whichever is higher.

Kotak Mahindra Bank is introducing broader changes, including fees on wallet loading, standing instructions and utility bill payments, along with a revised calculation for minimum amounts due.

A changing landscape for customers

These sweeping changes mark a significant shift in the cost of everyday banking and payments in India. Customers are being urged to stay informed, plan cash withdrawals to avoid new ATM fees, ensure Aadhaar-PAN linking well before the deadline, and carefully review credit card terms to avoid surprise charges.

As banks and regulators push for greater digital adoption and financial discipline, the cost of convenience is rising and staying alert is the best way to keep your finances in check.

(With inputs from the agencies)