New RBI ATM Transaction Rules From May 1: Top Banks Including HDFC Bank, PNB Notify New Charges

The ATM withdrawal rules will change from May 1, as directed by the Reserve Bank Of India. To simplify and standardise charges, several leading banks have already begun notifying account holders about revised fees and transaction limits.

The RBI’s updated framework applies to all banks and brings in key changes such as:

• A cap on the number of free ATM transactions per month.

• A maximum fee of Rs 23 (plus taxes) for each transaction beyond the free limit.

• Inclusion of both financial (cash withdrawals) and non-financial transactions (balance enquiries, mini statements, PIN changes) under the purview of chargeable events, depending on the bank.

The rules also extend to Cash Recycler Machines (CRMs), though cash deposits will not attract fees under this framework.

Under the new structure, customers can carry out:

• Three free ATM transactions per month in metro cities.

• Five free ATM transactions per month in non-metro locations.

These limits apply regardless of whether the ATM belongs to the customer’s own bank or another institution.

As per HDFC Bank’s website, from May 1, the charge for ATM transactions beyond the free limit will be revised from Rs 21 plus taxes to Rs 23 plus taxes. At HDFC Bank ATMs, only cash withdrawal transactions will attract charges beyond the free usage limit. Non-financial transactions such as balance enquiries, mini statements and PIN changes will remain free. At non-HDFC Bank ATMs, both financial and non-financial transactions will be counted towards the free limit, and any excess usage will be chargeable under the new rate structure.

According to the Punjab National Bank (PNB) website, with effect from May 9, 2025, customer charges for ATM transactions exceeding the free limit at other banks’ ATMs will be revised to Rs 23 per financial transaction and Rs 11 per non-financial transaction, excluding GST.

IndusInd Bank is set to implement a flat fee of Rs 23 for each cash withdrawal made at non-IndusInd Bank ATMs, once the customer has exhausted their monthly free usage. This change will take effect from May 1, 2025, and applies to all categories of customers including those with savings, salary, NRI or current accounts.

Starting May 1, Kotak Mahindra Bank will revise its ATM transaction charges across both its own ATMs and those of other banks. Once customers exceed their monthly free transaction limits, financial transactions will be charged at Rs 23 (up from Rs 21), and non-financial transactions such as balance enquiries or mini statements will cost Rs 10 (up from Rs 8.50). The number of free transactions offered under specific account types or banking programmes remains unchanged. The revised charges will only apply to transactions beyond those free limits.

State Bank of India (SBI) has taken a slightly different approach, having already revised its ATM policy earlier this year. Since Feb. 1, all SBI savings account holders are entitled to five free transactions at SBI ATMs, and 10 free transactions at ATMs of other banks, irrespective of whether the customer resides in a metro or non-metro area.

With changes in ATM usage charges set to take effect, customers are urged to keep a close watch on their transaction frequency, particularly in metro cities where the number of free transactions is lower. To avoid incurring charges of Rs 23 per transaction beyond the free limit, it is advisable to limit unnecessary cash withdrawals. Embracing digital banking alternatives is also encouraged, as banks continue to promote reduced reliance on physical cash handling.