ATM withdrawals to cost more after free limit from May 1

From May 1, ATM withdrawals beyond free limits will cost ₹23 per transaction, as RBI hikes the cap on bank charges.

Starting May 1, ATM users across India will need to pay more for transactions after they exceed their monthly free limits. The Reserve Bank of India (RBI) has revised the cap on ATM transaction charges, allowing banks to increase fees from Rs 21 to Rs 23 (excluding taxes) per transaction beyond the allowed number of free transactions.

 

Revised free transaction limits

 

According to the RBI guidelines, the number of free ATM transactions per month remains unchanged:

 

 

Own Bank ATMs: 5 free transactions

 

Other Bank ATMs: 3 free transactions in metro cities & 5 free transactions in non-metro areas

 

 

 

These free transactions include both financial like cash withdrawals and non-financial services such as balance enquiries, mini statements.

 

Banks announce higher charges

 

Following the RBI’s announcement, multiple banks have updated their ATM fee structure, below is the mention of the banks and their charges according to their websites.

 

 

Kotak Mahindra Bank: Effective May 1, the bank will charge Rs 23 per financial transaction and Rs 10 per non-financial transaction after the free limit, applicable at both Kotak and non-Kotak ATMs.

 

 

 

HDFC Bank: From May 1, HDFC will charge Rs 23 plus taxes for cash withdrawals beyond the free limit. Non-financial transactions at HDFC ATMs will remain free, but at other bank ATMs, both types of transactions count toward the limit.

 

 

 

Punjab National Bank (PNB): Starting May 9, PNB will charge Rs 23 per financial transaction and Rs 11 per non-financial transaction once the free quota is used up.

 

 

 

 

Disclosure: Entities controlled by the Kotak family have a significant shareholding in ‘Business Standard’.