ATM transactions change

From May 1, the rules of withdrawing money from ATM are going to change. The Reserve Bank of India (RBI) has approved to increase the fee on ATM transactions, which will be applicable from May 1, 2025. In addition, banks are allowed to modify the transaction limit, which can also be reduced. This step has been taken with the aim of bringing transparency in fee for customers and increasing flexibility in ATM network. Many banks like State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB) and Kotak Mahindra Bank have already informed customers about the change in the fees incurred for free ATM transactions.

SBI first announced an increase in fees and stated that the new ATM transaction fees will be applicable from February 1. The bank says that the new structure aims to simplify the fee slab, promote digital banking and standardize the transaction limit in metro and non-Metro cities.

According to HDFC Bank, the ATM transaction fee for more transactions than the free limit will increase from Rs 21 + tax to Rs 23 from 1 May 2025 to Rs 23. This fee will only apply to cash clearance, while no fee will be charged on non-financial transactions such as balance inquiry, mini statement and pin changes.

Punjab National Bank has also said that there will be a fee of Rs 23 on transactions more than free limit. It has been informed on the bank's website that the customer fee for more transactions at the ATMs of other banks has been revised from May 09 to Rs 23 per financial transaction and Rs 11 per non-financial transaction (except GST).

IndusInd Bank has also given a similar information that a fee of Rs 23 will be charged on ATM cash withdrawal ahead of free limit from non-IndusInd Bank ATM.

The RBI has clarified monthly allowances for free ATM transactions as well as the difference between ATM and other banks of its bank. Customers living in metro cities will get three transactions per month, while customers living in other cities will get five free transactions per month.

Customers who cross their monthly free transactions boundary can be charged a maximum of Rs 23 per transaction by banks. This fee applies to both financial and non-financial transactions.

SBI has updated the number of free ATM transactions available to savings account holders from February 1, 2025 based on their average monthly balance. As per the revised policy, all customers will get 5 free transactions at SBI ATM every month and 10 free transactions at other bank ATMs.

For those who keep a minimum amount of Rs 25,000 to Rs 50,000, the number of free transactions at the ATMs of other banks is fixed at 5 per month. This also applies to the minimum amount of account holders between Rs 50,000 to Rs 1,00,000. On the other hand, people with a minimum amount of more than Rs 1,00,000 will get the benefit of unlimited free transactions on both SBI and other bank ATMs.

If the border crosses, SBI ATM will charge Rs 15 per transaction per transaction. The fee for transactions at other banks' ATMs is Rs 21 + GST ​​per transaction, which is applicable in all areas including metro cities.