The Reserve Bank of India (RBI) has officially revised the ATM transaction charges starting in 2025, bringing an increase that will affect millions of bank customers across India. The move aims to balance maintenance costs and promote digital transactions, but for frequent ATM users, it means one thing — higher withdrawal costs after your free limit ends.
New ATM Charges from 2025
Under the new guidelines, banks are allowed to charge customers ₹23 (plus GST) per transaction once they exceed their monthly free limit. Earlier, this fee was ₹21 per transaction, meaning you’ll now pay ₹2 extra every time you withdraw cash beyond your limit.
Your free ATM transactions remain unchanged. You still get:
5 free transactions per month at your bank’s ATMs, including balance enquiries.
3 free transactions per month at other banks’ ATMs in metro cities, and 5 in non-metro areas.
Once these free limits are used up, you’ll start paying ₹23 per transaction — whether it’s cash withdrawal, mini statement, or balance check.
Why Did the ATM Fees Increase?
According to the RBI, the hike was necessary due to rising operational costs for banks and upgraded security systems in ATMs. Banks now spend more on power backup, cash management, and software updates. This modest ₹2 increase helps maintain infrastructure while nudging users toward digital payment systems like UPI and net banking.
How It Affects You
If you use ATMs frequently — especially from other banks — this fee hike could slightly increase your monthly banking expenses. For example, if you make 5 additional withdrawals beyond your free limit, you’ll pay ₹115 plus GST in fees.
How to Avoid Paying Extra ATM Fees
The good news is that you can easily avoid paying these charges with a few smart steps.
Plan your cash withdrawals in advance so that you stay within your free limit.
Prefer using your own bank’s ATMs since they often have higher free limits.
Switch to digital payment options like UPI, debit card swipes, or online transfers for small expenses.
Check your bank’s ATM policy—some premium accounts offer higher free limits.
Bank-Specific Updates
Several leading banks like ICICI Bank, HDFC Bank, Axis Bank, and SBI have already notified customers about the revised charges effective from 2025. Some banks may also revise cash deposit and demand draft (DD) fees from the same date, so it’s worth reviewing your account’s updated fee structure.
Expert Insight
Financial experts say this move isn’t intended to penalize customers but to encourage digital behavior. However, it’s essential for customers to stay informed. Even small recurring charges, like ₹23 per withdrawal, can add up over a year — especially for people who rely heavily on ATMs.
Conclusion: The ATM Fee Hike 2025 marks a small but important change in how we manage cash. While ₹2 extra per transaction may not seem much, regular ATM users could feel the difference. By switching to smarter digital methods and planning withdrawals better, you can avoid unnecessary fees and keep your banking costs under control.
Disclaimer: All information mentioned above is based on RBI’s official circulars and verified banking sources as of November 2025. Individual banks may have slightly different policies, so always confirm with your bank before making frequent withdrawals.
