RBI's New ATM Rules 2025: Free Transaction Limits, Bank Charges, and Cash Withdrawal Guidelines Explained

The Reserve Bank of India (RBI) has rolled out new rules for ATM transactions that will directly impact how customers withdraw cash, deposit money, and even check their account balance. These updated guidelines set clear limits on free transactions, outline charges for exceeding those limits, and mandate stricter requirements for large cash dealings.

Free ATM Transaction Limit in Metro Cities

Under the new rules, customers living in metro cities can avail three free ATM transactions per month. These free transactions include both cash withdrawals and non-financial services like balance enquiries. Once the limit is crossed, charges apply for every additional transaction.

Free ATM Transaction Limit in Non-Metro Cities

For customers residing in non-metro areas, the RBI has set a slightly higher threshold. They will be allowed five free transactions per month. Just like in metros, both financial and non-financial transactions count toward this limit.

Charges After Free Limit Expires

If a customer exceeds the free limit, banks are permitted to levy charges. The cost can go up to ₹23 plus GST per transaction for cash withdrawals. For non-financial transactions such as balance checks, many banks charge around ₹11 plus GST.

Bank-wise ATM Charges

• Punjab National Bank (PNB): ₹23 for financial transactions, ₹11 for non-financial transactions.

• HDFC Bank: Flat ₹23 per transaction after the free limit.

• State Bank of India (SBI): Currently continuing with older rates, though changes may be expected soon.

Cash Deposit and Withdrawal Rules

When it comes to depositing cash through Cash Recycler Machines (CRM), customers generally do not face any additional fees. However, if withdrawals exceed the permitted daily or monthly limits, banks may impose extra charges based on their internal policies.

Annual Cash Transaction Limit

To strengthen measures against unaccounted money, RBI has also introduced a stricter rule. If a customer deposits or withdraws more than ₹20 lakh in cash within a financial year, it is mandatory to provide PAN and Aadhaar details. This move is intended to curb black money transactions and enhance transparency in the financial system.

How to Avoid Extra Charges

Customers can minimize unnecessary fees by following a few simple steps:

• Use your own bank’s ATM whenever possible to maximize free usage.

• For non-cash needs such as balance enquiries and mini statements, rely on net banking or mobile banking instead of visiting an ATM.

• Keep track of monthly ATM usage so that transactions don’t exceed the free limit.

Why These Rules Matter

The RBI’s revised guidelines are designed to balance customer convenience with banking sustainability. By setting transaction limits, the central bank aims to encourage customers to use digital banking platforms more often, while also ensuring that the costs of maintaining ATM networks are fairly distributed.

What Customers Should Do Now

Bank customers should review their ATM usage habits and plan withdrawals carefully. Those who make frequent cash withdrawals or balance checks must switch to online channels wherever possible to save on extra charges. Additionally, anyone expecting to carry out high-value cash deposits or withdrawals this year must ensure their PAN and Aadhaar are updated with their bank accounts to avoid compliance issues.

Key Takeaway

With these new ATM transaction rules, the RBI has made it clear that while customers continue to enjoy free transactions, there are stricter limits and higher penalties for overuse. Awareness and careful planning will help account holders save money and avoid unnecessary charges.