RBI revises ATM transaction rules: New fees effective May 1, 2025

The Reserve Bank of India (RBI) has announced revised ATM transaction fees, effective May 1, 2025. Changes include the number of free transactions and fees for additional transactions. Metro cities will have three free transactions per month.

The Reserve Bank of India (RBI) has released a revised framework for ATM transaction fees nationwide. The new fees will take effect from May 1, 2025. Free transaction limits, charges beyond those limits, and interchange fees are being modified. These changes provide flexibility in the operation of ATM networks and ensure transparency in charges levied on customers.

Banks like HDFC Bank, PNB, and Kotak Mahindra have already informed their customers about the changes in charges for exceeding free ATM transaction limits. The RBI has clarified the number of free ATM transactions customers can avail each month, with different limits for own-bank ATMs and those operated by other banks.

In metro cities, customers can have three free transactions per month, while other cities have a limit of five. These limits apply to both financial and non-financial transactions. If customers exceed their monthly free transaction limit, banks can charge a maximum of ₹23 per transaction, applicable to both financial and non-financial transactions. Additional taxes may apply.

According to HDFC Bank's website, from May 1, 2025, the fee for ATM transactions beyond the free limit increases from ₹21 + taxes to ₹23 + taxes. IndusInd Bank's website states, "Effective May 1, 2025, charges of Rs.23 will be levied for every transaction beyond free limits at Non-IndusInd Bank ATMs."