Every day, millions of people in India withdraw cash through ATMs. Until now, customers enjoyed a fixed number of free transactions every month. But from 2025, the Reserve Bank of India (RBI) along with all banks public, private, and rural—have implemented new rules.
Now, if you go beyond the free limit, you’ll have to pay an extra fee for each additional withdrawal. This change directly impacts regular customers, especially those who rely heavily on cash.
What Are the New Rules?
Under the new guidelines, account holders will get a fixed number of free transactions per month. Once the free limit is crossed, banks will charge extra fees for every withdrawal.
These rules are the same across public sector banks, private banks, and rural banks, though exact charges may vary slightly from one bank to another.
ATM Transaction Limits
- Own Bank ATM: 5 free transactions per month. After that, ₹10–₹20 will be charged per transaction.
- Other Bank ATM: 3 free transactions per month. After that, ₹20–₹25 will be charged per transaction.
(Charges can differ slightly depending on the bank.)
How Will It Affect Customers
For customers who frequently withdraw money in small amounts, this rule means extra costs. Salary earners, daily wage workers, and people in smaller towns—who often depend more on cash—will feel the impact more.
This is why planning withdrawals smartly has now become important.
Why Did Banks Make This Change?
According to banks, the main reason behind these changes is to promote digital transactions. Instead of making frequent cash withdrawals, customers are being encouraged to use UPI, NetBanking, debit/credit cards, and online payments for everyday expenses.
How Can You Avoid Extra Charges?
- Use digital payments wherever possible.
- Withdraw larger amounts in one transaction instead of multiple small ones.
- Keep track of your monthly free limit and plan accordingly.
By doing this, you’ll save money on extra fees and also enjoy the convenience of digital transactions.
