ATM Cash Withdrawal Charges: What is the new Update?

Frequent ATM users will have to bear higher transaction charges as the Reserve Bank of India (RBI) revised fees on May 1st. The users will now be charged an extra Rs 2 for each transaction above the free limit, including both the cost of owning and maintaining ATMs].

What is ATM Withdrawal Charges?

ATM withdrawal charges is the charge or fee that banks impose on atm transactions for using ATM beyond the specifed ATM transaction limit. This charge is applied to all cash withdrawals, balance enquiry or any other ATM service.

What Are Revised ATM Fees?

ATM fees have been revised recently, and customers will now have to pay an additional Rs 2 on each transaction once they cross the specified free limit. Customers will be charged Rs.23, previously Rs.21, for each transaction at ATMs beyond the monthly free limit.

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How Many Free ATM Transactions / Withdrawals Can be Made?

Currently, the central bank allows five free monthly withdrawals from your own bank's ATMs and an additional three from other banks in major cities. In non-metropolitan areas, in addition to your bank's five free ATM transactions, you are eligible for five additional transactions at different banks. The monthly free transactions cover financial (money withdrawal, deposit, etc.) and non-financial transactions (checking balance, PIN change, etc.) at your bank's or another bank's ATM. No changes to the free transaction limits. The free transaction restrictions remain constant and apply to savings account customers at all banks in India. Previously, clients were charged Rs 21 each cash withdrawals after exceeding their free limit, which was implemented in 2022.

Increased Charges Effect on Small Banks

These new fees will only apply if clients surpass their free transaction limit, which is presently set at three free monthly transactions for other banks' ATMs in major cities and five in non-metro areas. Due to increased operational costs, white-label ATM operators and banks have lobbied for this hike. The increase in transaction costs is projected to have a greater impact on smaller banks, which operate fewer ATMs and rely on larger banks for customer withdrawals. As a result of this move, clients who use ATMs outside their home bank's network will pay more to withdraw cash and check their balance.

What is an ATM Interchange Fee?

An ATM interchange fee is a charge or fee that one bank has to pay another bank for ATM services offered by the bank to other banks’ customers. Banks frequently pay these fees to customers as part of their operating expenses. For example, if you are an HDFC Bank customer but withdraw money over the free limit from an SBI ATM, in such a case, HDFC Bank charges you for this transaction. The current intercharge fee is Rs.17 for financial and Rs. 6 for non-financial transactions.

Banks' Revised ATM Charges-

HDFC Bank ATM charges-

According to HDFC Bank's official site, ATM transaction charges beyond the free limit of Rs 21 + taxes would be revised to Rs 23 + taxes, wherever applicable.

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PNB ATM charges-

The Punjab National Bank stated that customers will be charged Rs.23 per financial and Rs.11 per non-financial transactions which excludes GST beyond free limit from 09.05.2025.

IndusInd Bank ATM charges-

IndusInd Bank revised ATM charges or fees of Rs.23 per transaction for ATM cash withdrawals made at any other bank’s ATM beyond the free limit.

SBI Bank ATM charges-

SBI Bank has yet to change its ATM charges. The bank is charging Rs.15+ GST per transaction beyond the free limit at any SBI ATM and Rs. 21+GST per transaction at other banks’ ATMs.

ICICI Bank ATM charges-

ICICI Bank has not disclosed any modifications to its ATM fee structure following the free transaction restriction. Currently, the bank offers its customers five free monthly ATM limits for both financial and non-financial transactions. The bank will charge Rs. 21 for each financial transaction and Rs 8.50+ applicable GST for every non-financial transaction.

Conclusion

The revised charges got effective from 1st. may 2025. Customers can be mindful of their ATM usage to avoid ATM fees or charges. It is essential to be updated on the latest ATM charges, which can help with withdrawals and unnecessary costs.