Bank ATM Charges Hike: Starting July 1, 2025, some of India’s leading private banks — including ICICI Bank, Axis Bank, and Federal Bank — will revise their service charges, making basic banking services like ATM withdrawals, cash deposits, IMPS, NEFT, and demand drafts more expensive for customers.
These changes come soon after many PSU banks updated their ATM transaction charges following the RBI’s new guidelines. Now, with private sector banks also revising fees, the impact will be felt more widely by the common account holder.
ICICI Bank: New Charges Effective from July 1, 2025
ICICI Bank has notified its customers that the following revised charges will apply from July 1:
ATM Transaction Charges at Non-ICICI ATMs
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Free Transactions:
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First 3 transactions per month (financial + non-financial) in metro cities: Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad
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First 5 transactions per month in non-metro locations
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Post Free Limit:
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Rs 21 per financial transaction
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Rs 8.50 per non-financial transaction
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18% GST extra on all charges
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International ATM Withdrawals
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Rs 125 per financial transaction
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3.5% currency conversion fee
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Rs 25 for non-financial transactions
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Senior citizens are exempt from these charges
Demand Draft (DD) and Pay Order (PO) Charges
Standard Charges
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Up to Rs 10,000: Rs 50
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Above Rs 10,000: Rs 5 per Rs 1,000 (Minimum Rs 75, Maximum Rs 15,000)
Discounted Charges for Senior Citizens, Students, Rural Customers
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Up to Rs 10,000: Rs 40
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Rs 10,001 to Rs 50,000: Rs 60
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Above Rs 50,000: Rs 5 per Rs 1,000 (Max Rs 15,000)
IMPS Charges (Effective May 1, 2024)
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Up to Rs 1,000: Rs 2.50
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Rs 1,001 to Rs 25,000: Rs 5
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Rs 25,001 to Rs 5 lakh: Rs 15
NEFT Charges (Outward)
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Online Transactions: Free
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Branch Transactions:
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Up to Rs 10,000: Rs 2.25
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Rs 10,001 to Rs 1 lakh: Rs 4.75
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Rs 1 lakh to Rs 2 lakh: Rs 14.75
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Rs 2 lakh to Rs 10 lakh: Rs 24.75
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RTGS Charges (Outward)
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Online Transactions: Free
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Branch Transactions:
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Rs 2 lakh to Rs 5 lakh: Rs 20
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Above Rs 5 lakh: Rs 45
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Axis Bank: Charges Effective July 1, 2025
Axis Bank has also updated its charges for savings, NRI, Trust, Priority, and Burgundy customers.
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ATM Free Limit:
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3 transactions in metro cities
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5 transactions in non-metro areas
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Post Free Limit Charges:
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Rs 23 per financial transaction
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Rs 10–12 per non-financial transaction
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Federal Bank: Revised Charges from June 1, 2025
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ATM Charges:
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Rs 23 per financial transaction
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Rs 12 per non-financial transaction (after free limit)
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Cash Handling:
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First 3 cash transactions per month are free
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Charges apply after the free limit
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Locker Fees:
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Increased rent and penalties on delayed payments
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HDFC, SBI, PNB, Yes Bank, IndusInd: New Charges from May 2025
As per RBI guidelines, major banks revised their charges in May 2025.
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ATM Charges Post Free Limit:
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Financial: Rs 23
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Non-financial:
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SBI: Rs 5
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PNB: Rs 11
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Others: Vary by bank
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Kotak Mahindra Bank: Charges from May 2025
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Rs 23 per financial transaction
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Rs 10 per non-financial transaction (after free limit)
What Should Customers Do?
With rising charges across banks, customers need to manage their banking habits more wisely. Here are a few tips:
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Track your free transaction limits and plan accordingly
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Use UPI, mobile banking, or internet banking for most payments
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Avoid unnecessary ATM visits, especially at non-home bank ATMs
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Consider switching to a premium savings account with more free transactions if you regularly exceed limits
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For those using cash frequently, choose banks with better free transaction limits or relaxed fee structures
Final Takeaway
Bank ATM Charges Hike: The latest hike in ATM withdrawal charges, IMPS fees, and DD rates is set to impact day-to-day banking for many Indians. With fees increasing across both public and private sector banks, it’s more important than ever for customers to adapt. Shifting towards digital payments and managing cash usage smartly can help avoid these additional costs.
