RBI's New ATM Guidelines: Banks Inform New Transaction Charges From May 1

A new framework in respect of the ATM transaction fee has been released by the Reserve Bank of India (RBI). The notified changes will be effective from May 1, 2025. The new guidelines have revised free transaction limits, updated charges for crossing those limits, and amended the interchange fee structure.

This move is in line with RBI's ongoing efforts to consolidate transparency and trust among the customers, as well as offering flexibility to the functioning of ATM networks. Several Indian banks have already informed their customers regarding the amendment of transaction charges and transaction limits. HDFC Bank, Punjab National Bank, Kotak Mahindra Bank are a few among them.

The RBI has detailed the number of free ATM transactions that will be accessible to customers from now on, classifying them between their own bank ATMs and those run by other banks.

Only customers living in metro cities can only get three free ATM transactions each month. Compare this to non-metro cities, where there are five such free ATM transactions available to metro city customers. Both financial and non-financial transactions will fall under these thresholds.

In case a customer reaches their monthly free transaction limit, banks can now levy a maximum of Rs 23 per transaction as fee. This fee will be levied on both financial and non-financial transactions. In addition to that, taxes applicable will be levied separately.

These charges are applicable not only on traditional ATM withdrawals but also on any transaction done at the Cash Recycler Machines (CRMs), but not on cash deposit transactions. 

According to the HDFC Bank website webpages, "With effect from May 1, 2025, ATM transaction charge rate above the free limit of Rs 21+taxes would be changed to Rs 23+taxes, wherever applied".

During the utilisation of any HDFC Bank ATMs, the above-mentioned charge will be charged only on cash withdrawal. Non-financial transactions like balance enquiry, mini statement generation and modification of ATM pin will not be charged with any fee.

In the event of a transaction done through other bank ATMs by an HDFC Bank customer, the charge will be levied on both financial (cash withdrawal) and non-financial (pin change, mini statement and balance enquiry) transactions.

Since the new transaction rules coming into effect from May 1, 2025, customers are requested to keep a record of their ATM usage, particularly while using other banks' metro area ATMs. Also note the Rs 23 transaction fee cap for crossing available free transaction limit.