ATM withdrawals get costlier: HDFC, SBI, ICICI, others are charging this much post free transactions

The Reserve Bank of India (RBI) announced an increase in ATM cash withdrawal charges, effective from May 1, 2025. Under the new rule, banks are permitted to charge a maximum of Rs 23 per transaction when customers exceed their monthly free transaction limits. Previously, customers were charged Rs 21 per transaction after utilizing their free limit.

The free transaction limits comprise of five free ATM transactions at own-bank ATMs per month, three free transactions at other-bank ATMs in metro cities, and five free transactions at other-bank ATMs in non-metro cities. These regulations are applicable to savings account holders across all banks in India, with no adjustments made to the free transaction limits.

This rule affects all commercial banks, including regional rural banks (RRBs), cooperative banks, authorised ATM network operators, card payment network operators, and white-label ATM operators.

Effective May 1, 2025, many banks have revised ATM transaction charges as per guidelines from the central bank.   

HDFC Bank has revised its ATM transaction charges. Customers who exceed their monthly free transaction limits will now incur a charge of Rs 23 plus applicable taxes per transaction, up from the previous Rs 21. These new charges apply solely to cash withdrawals at HDFC Bank ATMs, while non-financial transactions such as balance enquiries, mini statements, and PIN changes remain free. In metropolitan areas like Mumbai and New Delhi, this policy applies uniformly across all commercial banks, including regional rural banks and co-operative banks, as outlined by the RBI. 

State Bank of India (SBI) has also updated its ATM transaction policies, effective from February 1, 2025. All SBI customers receive five free transactions at SBI ATMs and ten at other bank ATMs monthly. Customers with an average monthly balance (AMB) between Rs 25,000 and Rs 100,000 are entitled to five free transactions at other bank ATMs, while those with an AMB above Rs 1,00,000 enjoy unlimited free transactions. Charges beyond these limits are set at Rs 15 plus GST per transaction at SBI ATMs and Rs 21 plus GST at other bank ATMs. This detailed tiered approach highlights the intricate balance banks must maintain in providing cost-effective services. 

Meanwhile, ICICI Bank and IndusInd Bank have also adjusted their fee structures. ICICI Bank allows five free ATM transactions per month, though charges post these limits include Rs 21 for each financial transaction and Rs 8.50 plus applicable GST for non-financial ones. IndusInd Bank customers are now subject to Rs 23 per transaction for cash withdrawals at non-IndusInd Bank ATMs beyond their free limits, reflecting a broader industry trend towards higher transaction fees due to increased operational costs. 

Punjab National Bank (PNB) has similarly revised its charges. According to PNB's website, "It is to inform that the customer charges for over and above free transactions on other banks' ATMs are revised to Rs 23/- per financial transaction and Rs 11/- per non-financial transaction (excluding GST) w.e.f. 09.05.2025." This aligns with the regulatory framework aimed at standardising ATM usage charges across the banking sector. This approach ensures that customers are well-informed and prepared for the cost implications associated with exceeding their free transaction limits.