Banking services are ever-evolving, and massive changes have taken place in ATM transaction charges from April 2025 to give added conveniences to customers and encourage further usage of digital banking. However, it is expected to add more to the cost of cash withdrawal for such customers.
Hiked Cash Withdrawal Charges
Cash withdrawals from ATMs are going to become costlier from May 2025, under the new guidelines of the Reserve Bank of India (RBI). As per reports, every customer withdrawing cash beyond the limits of free transactions will pay an additional fee of ₹2 for every financial transaction.
Fees Also Hiked On Non-Financial Transactions
Now the charges have been increased for non-financial services like balance inquiry and mini statement that do not relate to cash withdrawal. An additional ₹1 will now be charged from consumers for these services annoucing another charges hike.
Transaction Limit In Other Bank ATMs
Customers would today be limited to three free withdrawals from ATMs belonging to other banks. After that, every transaction above the threshold will be charged from ₹20 to ₹25.
Promotion Of Digital Banking
To promote digital banking, Banks have introduced AI-powered chatbots and advanced facilities at online services. Further, they have also tightened their security features, such as two-step authentications and biometric verification.
Amendment To Minimum Balance Rules
In this way, large banks, such as SBI and Punjab National Bank, are amending their minimum balances. Now there will also be a separate minimum balance rule for urban, semi-urban and rural areas. Non-maintenance of balance may lead to more charges for the customers in question.
Future Prospects
These changes in the banking sector were introduced to encourage customers towards the digital site for their transactions. However, those customers who prefer cash transactions will now face increased charges. More changes in the coming months will further require customers to change their arrangements in their financial plans due to changed rules in banking.
It is a different thing that this change can inspire some customers to switch to digital banking, but for those who prefer cash transactions, it may incur additional expenses. Hence, choosing wisely about one’s banking options becomes very essential for the customers.
Also Read: 8th Pay Commission Coming in 2026: Big Salary Hike Expected For Govt Employees