Beginning May 1, 2025, the reserve bank of India (RBI) will increase ATM charges, which will now be 23/- (not free) instead of 21/- per transaction. This is applied both to financial and non-financial transactions and it affects the regulars of the ATM.
Free Transaction Limits
The customers obtain five free transactions every month at the ATMs of their bank, the cash withdrawal, and balance check. In the case of other banks ATM, one can have three free withdrawals in metro areas and five in non-metro areas as before.
Why Fees Increased
The increase is in response to increasing maintenance of ATMs due to inflation and cybersecurity requirements. Increase in the interchange fees was demanded by white-label ATM operators, which resulted in the 2-inch increment to maintain infrastructure.
Impact on Customers
This can be more expensive to frequent users of ATM machines, particularly those in rural locations or cash users. Even small withdrawals multiply at an alarming rate, and 23 in addition to GST per additional transaction impacts monthly budgets.
Bank-Specific Charges
HDFC Bank and IndusInd Bank charge ₹23 for extra transactions at non-own ATMs. Punjab National Bank charges 11 non-financial transactions. At own ATMs, SBI charges ₹15 and at others ₹21, along with GST.
Digital Alternatives
The increase in fees promotes the use of digital payments such as UPI that are usually free. According to the RBI data, ATM withdrawals decreased between 57 crore in 2023 and 48.83 crore in 2025, which is evidence of the transition to preferring cashless methods.
ATM Fee Structure
| Transaction Type | Previous Fee (₹) | New Fee (₹) | Free Limit |
|---|---|---|---|
| Cash Withdrawal (Own Bank) | 21 | 23 | 5/month |
| Cash Withdrawal (Other Bank) | 21 | 23 | 3–5/month |
| Non-Financial (Other Bank) | 8.50 | 10–11 | 3–5/month |
Tips to Avoid Fees
Draw plans to remain within free limits, to use own-bank ATMs, or to use UPI to make small transactions. Check bank apps for usage alerts and visit rbi.org.in for official updates.
Also read: 7th Pay Commission Update 2025: What It Means for Your Salary, Pension & Festive Budget