RBI ATM Rules Change from May 1, 2025: New Withdrawal Charges by HDFC, PNB, IndusInd Bank

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Tue, 29 Apr 2025 19:11:57 IST
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Starting May 1, 2025, ATM withdrawals beyond the free limit will cost more. The Reserve Bank of India (RBI) has rolled out new guidelines aimed at streamlining ATM charges and improving transparency. Leading banks like HDFC, PNB, and IndusInd have already notified customers about the revised fees.


What’s Changing From May 1, 2025?


  • The fee for ATM withdrawals beyond the free transaction limit will rise from ₹21 to ₹23 per transaction.
  • This change is applicable across all banks in India.
  • The move is part of RBI’s efforts to make customer charges more transparent and adaptable for ATM networks.


Free ATM Transaction Limits Stay the Same


  • Own-bank ATMs: 5 free transactions per month.
  • Other-bank ATMs in metros: 3 free transactions per month.
  • Other-bank ATMs in non-metros: 5 free transactions per month.

Bank-wise ATM Charges Update


HDFC Bank:

  • From May 1, 2025, charges beyond the free limit at HDFC ATMs will rise to ₹23 plus applicable taxes.
  • Only cash withdrawals will be charged; non-financial transactions (like balance checks) remain free.

Punjab National Bank (PNB):


  • Starting May 9, 2025, customers will be charged ₹23 for financial transactions and ₹11 for non-financial ones at other-bank ATMs, excluding GST.

IndusInd Bank:

  • From May 1, 2025, Savings, Salary, NR, and Current Account holders will be charged ₹23 per cash withdrawal at non-IndusInd ATMs once the free limit is exhausted.

While the number of free ATM transactions hasn’t changed, the cost of going beyond them will be slightly higher starting May 2025. Customers are advised to stay updated with their bank’s policies to avoid unexpected charges.


FAQs: New ATM Rules Effective May 1, 2025


Q1. What changes has RBI made to ATM transaction charges?
From May 1, 2025, the charge for ATM withdrawals beyond the free transaction limit will increase from ₹21 to ₹23 per transaction.

Q2. Are free ATM transactions being reduced?
No, the number of free ATM transactions remains the same.

Q3. What will HDFC Bank charge after the free limit is crossed?
HDFC will charge ₹23 + taxes for cash withdrawals beyond the free limit starting May 1, 2025.

Q4. What are PNB’s revised ATM charges?
From May 9, 2025, PNB will charge ₹23 per financial transaction and ₹11 per non-financial transaction (excluding GST) at other-bank ATMs beyond the free limit.


Q5. What are IndusInd Bank’s new ATM withdrawal charges ?
IndusInd will charge ₹23 per transaction at non-IndusInd Bank ATMs for cash withdrawals beyond the free monthly limit from May 1, 2025.

Q6. Will GST be applied to these charges?
Yes, applicable GST will be charged over and above the transaction fees.

Q7. Why has the RBI introduced these changes?
The RBI aims to bring more transparency to customer charges and provide greater flexibility for ATM networks.

Q8. How can I avoid extra ATM charges?
Plan your withdrawals to stay within the free transaction limits and prefer using your own bank’s ATM when possible.