ATM Rule Change – Starting May 1, 2025, the Reserve Bank of India (RBI) rolled out some fresh and user-friendly updates regarding ATM usage. These changes are all about making everyday banking easier, more accessible, and a bit more cost-effective for everyone. So if you’re someone who often relies on ATMs—not just for withdrawing cash but for a range of other banking tasks—this update is especially for you. Here’s a complete breakdown in simple terms.

Free Transaction Limits: What’s New

Let’s start with the free transaction limits. If you use your own bank’s ATM, you now get five free transactions per month. And no, it’s not just about withdrawing cash. These five free transactions also include non-cash services like balance inquiry and mini statements. So use them wisely!

When it comes to using ATMs of other banks, the number of free transactions depends on your location. If you live in a metro city like Delhi, Mumbai, Bengaluru, Chennai, Kolkata, or Hyderabad, you’re entitled to three free transactions per month. If you’re in a non-metro area, the number goes up to five free transactions per month. Again, these include both cash and non-cash services.

What Happens When You Cross the Free Limit?

Now, let’s say you’ve already used up your free transactions for the month. What then? After that, your bank can charge you for each transaction—cash or non-cash. The maximum they’re allowed to charge is ₹23 plus GST per transaction. This includes activities like checking your balance, printing a mini statement, or changing your PIN. These charges apply even at Cash Recycler Machines, except when you’re depositing money.

Just as an example, if you’re an HDFC Bank customer and you go over the free limit, you’ll be charged ₹23 plus taxes for every extra withdrawal. And yes, even non-cash actions like balance inquiry at another bank’s ATM can attract this fee.

The 11 Free ATM Services You Can Enjoy

Here comes the good part—RBI has announced 11 ATM services that banks must provide free of charge, which is a pretty big win for customers. These services can be accessed either across all ATM networks or through selected partner machines, and yes, they’re absolutely free if you stay within your monthly limits.

Here’s what you can do at ATMs without worrying about being charged: withdraw cash (within the free transaction limits), check your balance, get a mini statement, change your PIN, request a cheque-book, transfer funds from your own account to another account you own, transfer funds to another bank account, recharge your mobile phone, pay utility bills, make EMI or loan payments, and even do a card-to-card money transfer.

This means you can now handle most of your routine banking needs from the nearest ATM without standing in long bank queues or opening your mobile banking app every time.

Why These Changes Matter

This move by RBI is important for a few key reasons. First, it puts a cap on ATM charges—₹23 per extra transaction—making sure banks don’t overcharge customers who need access to their own money. Second, it broadens the range of ATM services, so users can do a lot more than just withdraw cash. You can manage many aspects of your banking from one place now.

Also, these changes support India’s larger digital banking push. By limiting the number of free non-cash ATM transactions, the RBI is encouraging people to use mobile and internet banking for day-to-day needs. It’s a small nudge to get more people comfortable with digital banking platforms while still keeping the ATM accessible for essential services.

How to Make the Most of These Guidelines

To take full advantage of these changes, it’s a good idea to stick to your own bank’s ATMs whenever you can, as you get more free transactions there. Try to plan your ATM visits smartly—instead of withdrawing small amounts frequently, withdraw larger amounts less often so you don’t run out of free transactions.

Also, use your mobile app or internet banking for tasks like checking your balance or getting a mini statement. This way, you save your ATM transactions for when you really need them. It also helps to keep an eye on your monthly usage through banking alerts or app notifications. And remember, depending on the type of account you have—salary, premium, senior citizen, etc.—your bank might offer you extra free ATM transactions, so it’s worth checking the fine print.

Disclaimer

This article is for general informational purposes only and reflects RBI guidelines as of May 2025. Charges, limits, and services may vary depending on your bank and account type. Always consult your bank’s official communication for the most accurate and up-to-date information.