ATM Withdrawal News : If you often rely on ATMs for cash withdrawals, here’s an important update that affects your wallet. Banks have recently revised the charges applicable on ATM transactions, making it more expensive to withdraw money once your free limit is exhausted. Effective immediately, customers will have to pay ₹23 per transaction beyond the allowed number of free withdrawals per month. Let’s break down what this means for you, which banks are charging what, and how you can avoid extra fees.
ATM Withdrawal News : Why Have ATM Charges Increased?
Banks are facing increased operational costs for managing ATM networks, including maintenance, cash handling, and security. To offset these costs, the Reserve Bank of India (RBI) has allowed banks to raise ATM transaction fees. The previous fee cap was ₹21 per transaction beyond the free limit, but now it’s been revised to ₹23.
This increase might seem small, but it can significantly impact frequent ATM users who go over their monthly transaction limit.
New ATM Withdrawal Rules: Key Highlights
- New fee per extra transaction: ₹23 (up from ₹21)
- Applies only after exceeding monthly free ATM transaction limit
- Free limit: Typically 3-5 transactions for non-home bank ATMs
- Effective across private and public sector banks
- Charges apply to both financial (cash withdrawal) and non-financial (balance inquiry) transactions
Monthly Free ATM Transaction Limits
Below is a table showing the number of free ATM transactions allowed and when charges apply:
| Bank Type | Location | Free ATM Transactions | Beyond Limit Fee | Applies To |
|---|---|---|---|---|
| Private Banks | Metro Cities | 3 (other bank ATMs) | ₹23 per txn | Withdrawals & inquiries |
| Private Banks | Non-Metro Cities | 5 (other bank ATMs) | ₹23 per txn | Withdrawals & inquiries |
| Public Banks | Metro Cities | 3 (other bank ATMs) | ₹23 per txn | Withdrawals & inquiries |
| Public Banks | Non-Metro Cities | 5 (other bank ATMs) | ₹23 per txn | Withdrawals & inquiries |
| All Banks | Own Bank ATMs | 5 transactions | ₹23 per txn | After free limit exhausted |
| Small Finance Banks | All Locations | Varies (Usually 3-5) | ₹23 per txn | Withdrawals only |
| RBI Rule Applies | Pan India | As per bank/location | Max ₹23 allowed | Only after free limit |
Banks with Highest ATM Usage Fees
Some banks have already implemented the revised charges. Here’s a comparison table of popular banks and their updated ATM fees:
| Bank Name | Free ATM Txns (Other Banks) | Free ATM Txns (Own Bank) | Post-Limit Charge |
|---|---|---|---|
| HDFC Bank | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| ICICI Bank | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| SBI | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| Axis Bank | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| Bank of Baroda | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| Kotak Mahindra | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| Canara Bank | 3 (Metro) / 5 (Non-Metro) | 5 | ₹23 |
| IDFC First Bank | 5 (all locations) | 5 | ₹23 |
How to Avoid Paying ATM Withdrawal Charges
To minimize or avoid paying the ₹23 transaction fee, consider the following tips:
- Use UPI or digital payments: Opt for cashless transactions via UPI, net banking, or mobile wallets.
- Plan larger withdrawals: Withdraw higher amounts less frequently to stay within the free transaction limit.
- Visit your home bank ATM: Prefer using your own bank’s ATM for free transactions.
- Track your monthly limit: Use mobile banking to monitor the number of ATM transactions you’ve used.
- Switch to higher-tier accounts: Premium or salary accounts may offer more free ATM transactions.
Impact on Customers: What You Should Know
The increase in ATM charges may seem minor, but it adds up over time, especially for those who rely on cash transactions or have limited access to digital banking. Senior citizens and rural users might feel this change more as they depend on ATMs regularly. Being aware of your transaction count each month is now more important than ever.
What RBI Has Said
The Reserve Bank of India allowed this increase to balance the costs banks incur in operating ATM infrastructure. The RBI also capped the increase to a maximum of ₹23, preventing banks from overcharging customers. RBI also ensures that customers continue to receive a minimum number of free transactions every month.
ATM withdrawals are no longer as cheap as they once were. With the new ₹23 charge per transaction after the free limit, banking customers must become more strategic with their cash withdrawals. Make sure you understand your bank’s ATM rules, monitor your usage, and explore digital alternatives to avoid unnecessary charges. As India moves towards a more digital economy, minimizing cash dependency could save you money and hassle in the long run.
The information provided in this article is based on publicly available data as of May 2025. Bank policies may change, and users are advised to confirm with their respective banks for the most current information.
How much is the new fee for ATM withdrawals?
₹23 per transaction.
What is the new bank rule regarding ATM withdrawal fees?
Pay ₹23 for every ATM withdrawal under the new rule.
How much has the fee increased for ATM withdrawals?
₹23 is now charged for each ATM withdrawal transaction.
What is the specific amount you will now pay for each ATM withdrawal?
₹23
Join
Join