From today, ATM withdrawals beyond limit will cost you more: Details

The free limit under the new ATM rules has been set at three for metropolitan regions and five for non-metropolitan areas

The Reserve Bank of India’s (RBI) updated guidelines for ATM transactions are set to come into effect today. The new framework will bring changes to the free transaction limits, interchange fee structures, and charges for additional transactions.

 

RBI’s decision to update these guidelines was first communicated on March 28. Customers will be required to pay a fee of ₹23 after they exhaust their free ATM transaction limit each month. The free limit has been set at three for metropolitan regions and five for non-metropolitan areas. These updated guidelines will also be applied to transactions done at the cash recycler machines, the RBI noted in its notice.

 

It is worth noting that the free transactions will include both financial and non-financial activities, and additional taxes will be applied separately.

 

The central bank aims to boost the adoption of digital banking alternatives with this move, and it aims to streamline the ATM usage charges, which supports the ATM infrastructure expansion.

 

The hike in the fee of ₹23 marks an increase from the previous cap of ₹21 per transaction.

 

Banks notify customers

Several leading banks, including HDFC Bank and Punjab National Bank (PNB), have been notifying their customers about the updated guidelines.

 

HDFC Bank on its website stated, “With effect from 1st May 2025, ATM transaction charge rate beyond the free limit of ₹21 plus taxes would be revised to ₹23 plus taxes, wherever applicable.” The bank also clarified that only cash withdrawals beyond the free limit will incur charges at the bank’s ATMs, while the non-financial transactions will be free.

 

However, it is worth noting that at other banks’ ATMs, both financial and non-financial transactions will be counted in the free transaction limit.

 

PNB also stated that customers will be charged ₹23 per financial transaction and ₹11 per non-financial transaction, after they exhaust their free transaction limits. The updated revisions will come into effect on May 9, the bank noted.