ATM charges: Punjab National Bank, HDFC Bank, IndusInd Bank clarify new rates applicable from May 1

ATM transaction charges: The Reserve Bank of India (RBI) has rolled out a revised framework for ATM transaction charges, set to take effect from May 1, 2025. The updated guidelines focus on revising free transaction limits, tweaking charges for transactions beyond those limits, and adjusting the interchange fee structure. The move is part of the RBI’s broader push to enhance transparency in customer charges while giving ATM networks greater operational flexibility.

Several banks, including State Bank of India, HDFC Bank, Punjab National Bank (PNB), and Kotak Mahindra Bank, have already notified customers about the changes to charges for exceeding free ATM transaction limits.

State Bank of India (SBI) was the first to announce a revision to its ATM transaction fees and free usage limits for various account types, with changes effective from February 1, 2025. The bank said the new structure aims to simplify fee slabs, promote digital banking, and standardize transaction limits across metro and non-metro areas.

Here are the updated charges for PNB, HDFC Bank, IndusInd Bank: 

HDFC Bank

As per information on the HDFC Bank website, effective May 1st, 2025, the ATM transaction fee for transactions exceeding the free limit of Rs. 21 + taxes will be adjusted to Rs. 23 + taxes, where applicable.

For transactions conducted at HDFC Bank ATMs, only Cash withdrawal transactions will incur charges. Non-Financial Transactions such as Balance Enquiry, Mini Statement, and PIN Change will not be subject to fees.

When using Non-HDFC Bank ATMs, both Financial (Cash Withdrawal) and Non-Financial Transactions (Balance Enquiry, Mini Statement, and PIN Change) will be considered for charging.

Punjab National Bank

The PNB has said that transactions over and above the free limit will be charged at Rs 23. The bank website stated: “It is to inform that the customer charges for over and above free transactions on other Banks’ ATMs are revised as Rs.23/- per financial transaction and Rs. 11/- per non-financial transaction (excluding GST) w.e.f. 09.05.2025.”

IndusInd Bank

Similarly, the bank said ATM Cash withdrawal made at Non-IndusInd Bank ATMs, beyond free limits will be charged at Rs 23. According to the IndusInd website, “All the Savings/Salary/NR/Current Account customers will be charged INR 23 per transaction for ATM Cash withdrawal made at Non-IndusInd Bank ATMs, beyond free limits, effective 1st May 2025.”

Free transactions and charges beyond

The RBI has provided clarification on the monthly allowance for free ATM transactions, with a distinction between own bank ATMs and those operated by other banks. Customers in metro cities are entitled to three complimentary transactions each month, while customers in non-metro areas can avail up to five free transactions per month.

Customers who will surpass their monthly free transaction limits may be subject to a maximum charge of Rs 23 per transaction by banks. This fee applies to both financial and non-financial transactions, with applicable taxes billed separately. The revised fees are not limited to typical ATM transactions and also cover transactions completed at Cash Recycler Machines (CRMs), except for cash deposits.

State Bank of India

From February 1, 2025, SBI updated the number of free ATM transactions available for savings account holders based on their average monthly balance (AMB). As per the revised policy, all customers, regardless of their AMB or location (metro or non-metro), will receive 5 free transactions at SBI ATMs and 10 free transactions at other bank ATMs each month.

For customers maintaining an AMB ranging from Rs 25,000 to Rs 50,000, the number of free transactions at other bank ATMs has been set at 5 per month. This also applies to account holders with AMBs between Rs 50,000 and Rs 1,00,000. On the other hand, customers maintaining an AMB exceeding Rs 1,00,000 will retain unlimited free transactions at both SBI and other bank ATMs. This revision is aimed at streamlining the ATM usage structure and ensuring a consistent customer experience across all locations.

SBI monthly transactions

SBI has recently updated its fees for savings account holders who exceed the permitted number of free ATM transactions in a month. The charges are determined by the type of transaction (financial or non-financial) and the ATM used (SBI or other banks).

Once you have reached your monthly limit of free ATM transactions, SBI will impose a fee of Rs 15 + GST per transaction at SBI ATMs, regardless of your location. For transactions at other banks' ATMs, the fee is higher at Rs 21 + GST per transaction, applicable in all areas, including metro cities.