ATM Charges to Increase from May 1, 2025: Cash Withdrawals and Balance Checks to Get Costlier

RBI Approves Fee Hike, New Charges Will Apply After Free Limits

New Delhi, April 27 — If you frequently withdraw cash or check your balance at ATMs, get ready for a significant change. The Reserve Bank of India (RBI) has approved a proposal from the National Payments Corporation of India (NPCI) to increase ATM transaction charges starting May 1, 2025.

What Will Change from May 1, 2025?

• Cash Withdrawal Fee: Increased from ₹17 to ₹19 per transaction (beyond free limits)

• Balance Enquiry Fee: Increased from ₹6 to ₹7 per transaction (beyond free limits)

• Free Limit:

  • Metro cities: 5 free ATM transactions per month

  • Non-metro areas: 3 free ATM transactions per month

After exceeding the free transaction limit, the revised charges will apply.

Why Are ATM Charges Increasing?

ATM network operators and White Label ATM providers requested an increase in interchange fees due to rising operational and maintenance costs. NPCI recommended the hike, which has now been approved by the RBI.

Impact on Customers and Banks

• Customers using ATMs of banks other than their home bank will incur higher charges.

• Smaller banks that rely more heavily on other banks’ ATM networks may see a rise in operational costs.

• Banks might consider revising account maintenance charges to offset these rising costs.

• Frequent ATM users are advised to use digital payment options or prioritize transactions at their home bank’s ATM to avoid extra fees.

SBI Also Revises Its ATM Rules (Effective February 1, 2025)

The State Bank of India (SBI) has separately announced new rules for ATM transactions:

• Free Transactions per Month:

  • At SBI ATMs: 5 free transactions

  • At Other Bank ATMs: 10 free transactions (regardless of location or balance)

• For Customers with Monthly Average Balance (MAB) Above ₹1 Lakh:

  • Unlimited free transactions across ATMs

• Charges Beyond Free Limit:

  • At SBI ATMs: ₹15 + GST per transaction

  • At Other Bank ATMs: ₹21 + GST per transaction

• Balance Enquiry and Mini-Statement:

  • Free at SBI ATMs

  • ₹10 + GST at other bank ATMs

• Non-Cash Financial Transactions:

  • Free at SBI ATMs (not applicable at other banks’ ATMs)

Customers are advised to review their ATM usage habits carefully to avoid incurring additional charges and make greater use of digital banking services where possible.