RBI’s New Rule: ATM Card Users Face Fresh Trouble – What You Must Know

ATM has become an important part of every Indian's life. Every day, lakhs of people use ATM to withdraw money, check balance or get mini statement. But from May 1, 2025, many new rules related to ATM have come into effect. These changes are related to free transactions, cash withdrawal charges and daily cash limit.

If you are not aware of these changes, then extra money can be deducted from your account and sometimes even the ATM card can be blocked. Let us know the complete information about the new ATM rules.

How Many Free ATM Transactions Do You Get Now?

As per the new rules, now every customer will get limited free transactions – Only 5 free transactions (financial + non-financial) every month from your own bank's ATM. Only 3 free transactions from other bank's ATM in metro cities. 5 free transactions from other bank's ATM in non-metro cities. That means, once the limit is reached, you will have to pay a charge every time you check the balance or withdraw cash.

Increased Transaction Charges – ₹23 Per Use

Earlier, banks used to charge ₹21 per transaction after the free limit, but now it has increased to ₹23 + GST. That means if you use the ATM more than the limit, more than ₹23 will be deducted from your account every time. This charge will be levied not only on cash withdrawal but also on balance check, mini statement and changing PIN.

Daily ATM Withdrawal Limit Reduced

Some big banks have also reduced the daily cash withdrawal limit. Earlier, where normal savings account holders could withdraw up to ₹ 25,000 from ATM, now this limit has been reduced to ₹ 20,000. This limit may be slightly higher for premium account holders, but general customers will now have to be more careful while withdrawing cash.

Banks That Have Implemented the New Rules

Major Indian banks like HDFC Bank, Punjab National Bank (PNB), IndusInd Bank, SBI, ICICI Bank and YES Bank have already updated their charges and limits. HDFC Bank: ₹23 + taxes per transaction after free limit. PNB: Financial transactions at non-PNB ATMs are ₹23 and non-financial transactions are ₹11. SBI, ICICI, YES Bank: New charges applicable as per RBI guidelines.

What Customers Should Do Now

After the new ATM rules, customers will have to change their transaction habits. Instead of going to the ATM many times, use UPI, net banking and digital wallet. If you want to withdraw cash, withdraw more amount at once so that you do not have to go to the ATM again and again. Keep an eye on your free transaction limit. Use mobile banking app to check balance.

Final Thoughts

The new ATM rules that came into effect from May 1, 2025 will affect every customer. Now free transactions have been reduced, charges have increased and the daily cash withdrawal limit has also been reduced. Therefore, it is important that customers use ATM wisely and adopt digital payments as much as possible. This will not only save charges but will also save both time and money.

Disclaimer:

The information given in this article is for general awareness purposes only. All rules, charges and limits related to ATM may be changed by the bank and Reserve Bank of India (RBI) from time to time. Contact your bank or authorized financial advisor before making any kind of financial planning or decision. We will not be responsible for any decision taken based on the information given in this article.