Starting May 1, 2025, the Reserve Bank of India (RBI) has introduced new ATM transaction rules that impact all bank customers across India. These changes cover the number of free ATM transactions, updated ATM charges, and new policies regarding Cash Recycler Machines (CRMs).
If you frequently use ATMs, here’s what you need to know to avoid unexpected fees and make informed banking decisions.
Revised Free ATM Transaction Limits
Under the new RBI guidelines, the number of free monthly ATM transactions will now depend on your location:
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Metropolitan cities: Up to 3 free ATM transactions per month
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Non-metropolitan areas: Up to 5 free ATM transactions per month
These limits include both financial and non-financial transactions:
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Financial: Cash withdrawals
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Non-financial: Balance enquiries, mini statements, PIN changes, etc.
Updated ATM Charges Beyond Free Limit
Once your monthly quota of free ATM transactions is used up, banks can now charge:
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Up to ₹23 per transaction, plus GST
These charges apply to:
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All transactions beyond the free limit
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Both financial and non-financial transactions
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Cash Recycler Machines (CRMs) – except for cash deposits, which remain free
How Major Banks Are Implementing the New Rules
HDFC Bank
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From May 1, 2025, charges beyond the free limit will be:
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₹23 + GST per ATM transaction
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Only cash withdrawals beyond the free limit are chargeable at HDFC ATMs
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At other banks’ ATMs, both financial and non-financial transactions count toward the limit
Punjab National Bank (PNB)
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From May 9, 2025:
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₹23 + GST for each financial transaction
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₹11 + GST for each non-financial transaction at non-PNB ATMs
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IndusInd Bank
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Effective May 1, 2025, for all Savings, Salary, NRI, and Current Accounts:
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ATM withdrawals at non-IndusInd Bank ATMs beyond the free limit will be charged ₹23 per transaction
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Important Tips for Customers
To avoid extra charges and manage your banking efficiently:
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Monitor your monthly ATM usage, especially if you use ATMs from other banks
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Be aware of the ₹23 per transaction cap, excluding taxes
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Note that CRMs now follow the same charge rules as ATMs, except for cash deposits, which are still free
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Consider switching to digital banking options for balance checks, mini statements, and transfers
Why Has RBI Made These Changes?
The RBI’s new ATM rules aim to:
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Create a standardized fee structure across banks
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Encourage digital banking adoption while ensuring fair access to ATM services
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Improve infrastructure and reduce unnecessary cash handling costs
Despite growing digital adoption, cash remains important—especially in semi-urban and rural regions. According to RBI data:
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Monthly ATM withdrawals dropped from 57 crore (Jan 2023) to 48.83 crore (Jan 2025)
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The average monthly ATM withdrawal value in FY24 reached ₹1.43 crore, with a 5.51% YoY increase
Additionally, the National Payments Corporation of India (NPCI) announced a ₹7 interchange fee for balance enquiries in Nepal and Bhutan, excluding GST. These updates do not affect Micro-ATMs, international ATMs, or interoperable cash deposit machines.
Conclusion
With the new RBI ATM rules now in effect, staying informed is essential. Track your usage, avoid unnecessary ATM visits, and leverage digital banking tools to manage your finances efficiently. These changes are part of RBI’s effort to modernize banking while maintaining equitable access to cash across India.
