New Delhi
If you have a habit of withdrawing money from ATM again and again, change it immediately. If you do not do this, then you will start suffering from May 1. Actually, the Reserve Bank of India (RBI) has made some changes in the rules for withdrawing money from ATMs. These new rules will be applicable across the country from 1 May 2025. The Reserve Bank says that the purpose of these changes is to bring transparency on the charge on using ATMs. This will also make it easier for banks to run ATM networks.
Actually, every bank gives every customer free facility to a limit to withdraw money from ATM. This includes both the ATMs of its bank and ATMs of other banks. The bank starts taking charge after the free limit. This charge has been increasing from May 1. After the free limit, ATM transactions will have to pay a maximum of Rs 23 per transaction after May 1 every time. Tax will be levied separately on this. Till now this fee was up to Rs 21.
What will be the free transaction limit?
RBI has made it clear that even now 3 free transactions will be available in metro cities and 5 free transactions will be available in non-Metro cities. This limit will apply to both transactions such as cash extract and non-financially transactions like balance check, mini statement, PIN change etc.
How much will be charged after the free limit?
If you do more transactions than free limit, then now Rs 23 (plus tax) will have to be paid on every additional transaction. This rule will apply to all ATMs.
What are the banks saying?
Hdfc bank It has been said that from May 1, withdrawing cash from your ATM, more than Rs 23 + tax will be levied on transactions more than free limit. At the same time, non-financial transactions like balance check, mini statement and pin change will be free.
PNB It is said that after the free limit on ATMs of other banks, financial transactions will be charged Rs 23 and non-financial transaction will be charged for Rs 11 (GST separate). These changes will be applicable from 9 May 2025.
Indusind bank Has also informed that their savings, salary, NR and current account holders will have to pay Rs 23 per transaction on withdrawal from non-Indusind ATMs after free limit from 1 May 2025.
Advice for customers
Customers have been advised to keep an eye on their ATM transactions, especially when using other bank ATMs. To avoid more fees, try to use the ATM of your bank as much as possible or resort to digital payment.
How many times is free facility
In metro cities like Delhi, Mumbai etc., customers can use ATMs for free three times a month.
This limit is five times in non-metro cities. Non-Metro cities are those who are not as big as metro cities.
This limit is for both money withdrawing and other types of transactions. This means that you can withdraw money for free three or five times a month or check the balance.
Some banks have different rules
Some banks have given exemption in maximum transactions. It also includes HDFC Bank. HDFC Bank customers will be charged only after withdrawing money from HDFC ATM. It would be free to check the balance, remove mini statement and change the pin. If you withdraw money from the ATM of another bank, then along with withdrawing money, taking a mini statement and changing the pin will also be charged.
ATM outside home network will be expensive
On the first date of every month, many rules change in the country and many changes are going to be implemented from the first date of next month i.e. May 1. It also includes rules related to charge on withdrawing money from ATMs. Yes, if any transaction is done from an ATM machine outside the home bank network, or the balance is checked, then the user will now have to pay more than before. The charge using such ATMs is still applied and it is going to increase even more from 1 May.
Now the expenditure is going to increase so much
The Central Bank (RBI) had given permission to increase the fees based on the proposal of the National Payment Corporation of India (NPCI) in the past. According to the report, till now if the customers used to withdraw money from the bank ATM of another network instead of their home bank ATM, then they had to pay Rs 17 on every transaction, which will increase from May 1 to 19 rupees. Apart from this, if they used to check the balance from the ATM of another bank, then it was charged a fee of Rs 6, which will now be increased to Rs 7.
White level ATM operators demanded
The ATM Transaction Fee Hike was constantly being demanded by white-labeled ATM operators. He argued that the old fees are low in view of rising operating costs. After RBI’s approval to NPCI’s proposal, now there is a possibility of increasing pressure on small banks. Indeed, they are very much dependent on the ATM networks of other banks due to their limited infrastructure. It is important to know that the increased interchange fee is the amount that one bank gives to another bank when one of its customers uses another bank’s ATM for the withdrawal of money.
Significantly, ‘White Label ATMs’ act like ATMs of government and private banks. It is installed by private or non-banking financial companies (NBFCs) instead of bank. With these, you can use cash withdrawal, balance check or all the features that are available in other ATMs through Debit Card and Credit Card.
What is the free transaction limit of banks
Let us know here that these charges are applied then, bank users withdraw money after their free monthly transaction limit. Apart from home bank in metro cities, the limit of free transaction from the bank’s ATM has been fixed at five, while the limit of this free transaction in non -metro cities is three.