Mumbai, April 29: Beginning May 1, 2025, ATM users across India will have to pay more for transactions exceeding the free monthly limit. The Reserve Bank of India (RBI), following recommendations from the National Payments Corporation of India (NPCI), has approved fee increases to address the rising costs of ATM maintenance, cash handling, and interbank services.
Under the revised structure, charges for transactions beyond the free limit will increase from INR 21 to INR 23 plus GST. This applies to both financial and non-financial transactions, although some banks may continue to exempt non-financial services from charges.
No Change in Number of Free ATM Transactions:
- 5 free transactions per month at own-bank ATMs (including withdrawals, balance checks, PIN changes, and mini statements).
- 3 free transactions at other-bank ATMs in metro cities (Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad).
- 5 free transactions at other-bank ATMs in non-metro areas.
Major banks, such as HDFC Bank, PNB, IndusInd Bank, and Kotak Mahindra Bank, have already begun alerting their customers. HDFC Bank clarified that only cash withdrawals over the limit will attract fees, while services like balance enquiries and mini statements will remain free. IndusInd Bank has announced that all customer types — including Savings, Salary, NRI, and Current Accounts — will be subject to an INR 23 charge after the free limit is reached.
Additionally, the RBI has hiked the ATM interchange fee — what one bank pays another for allowing its customer to use an ATM — from INR 17 to INR 19 for financial transactions, and from INR 6 to INR 7 for non-financial ones. Charges will also apply to Cash Recycler Machines (CRMs) after the free usage cap is exceeded, in line with regular ATMs.
State Bank of India (SBI) customers will continue to get 5 free transactions at SBI ATMs, and 10 free transactions at other-bank ATMs for SBI cardholders. Beyond this, the INR 23 + GST fee will apply. While the fee hike aims to support the sustainability of ATM networks, customers of smaller banks — which often have fewer ATMs — may feel the pinch as they rely more heavily on other banks’ ATM services.
Users are advised to monitor their monthly ATM usage closely to avoid unexpected charges.
(The above story first appeared on Today News 24 on Apr 29, 2025 12:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
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