ATMs continue playing an essential role in allowing people to obtain cash as Indian society advances toward digital practices. Concepts relating to ATM daily withdrawal restrictions and transaction fees are evolving because of changes made by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) in 2025. The blog provides an in-depth analysis of contemporary ATM withdrawal restrictions and transaction expenses along with applicable management methods for cash withdrawals in 2025. The information provided here guides both regular ATM customers and casual observers about the updated regulations, which become effective on April 05, 2025.
What Are ATM Withdrawal Limits and Why Do They Exist?
Users can withdraw from ATMs up to the set maximum, defined as the daily and single transaction withdrawal limit. Under RBI guidelines, banks determine daily ATM withdrawal thresholds because they serve three security objectives: helping manage financial operations and fighting fraud. Every bank implements different daily withdrawal thresholds that depend on your account type and debit card, as well as your banking institution. Therefore, you need to know which rules apply to you.
There are two main factors why wholesale withdrawal restrictions exist in the ATM environment:
- Security measures and potential loss prevention apply when banks limit the number of daily withdrawals because they protect against unauthorized activities and theft incidents.
- The system enables banks to distribute cash properly among their ATMs.
- Financial Institutions use these measures to follow RBI monitoring rules concerning cash circulation.
The increasing use of UPI digital payments has not supplanted ATMs’ essential function in mostly rural and semi-urban locations. We will examine the current and projected limits on cash withdrawals from ATMs and their associated charges for 2025.
ATM Withdrawal Limits Per Day in 2025
The daily withdrawal limit of ATMs in 2025 differs between banks because they consider factors such as account types, debit card versions, and ATM position. The current status of daily ATM withdrawal limits displays the following information, which follows recent changes in the industry.
- Standard ATM Withdrawal Limits
- Minimum Limit: Starts at ₹10,000 per day for basic accounts in some public sector banks like Bank of India.
- Customers with HDFC and ICICI premium accounts can request to withdraw a maximum of ₹1 lakh or above from their accounts.
- With specific restrictions, ATMs limit customers to withdraw a maximum of ₹50,000 to a minimum of ₹10,000 per transaction based on both machine variations and card type.
- New Accounts and Restrictions
Banks deploy security systems to control new account holder cards by establishing six-month daily spending limits at ₹25,000. The bank follows standard withdrawal limits with automatic increases or customer-requestable status once the security period ends according to its protocol.
The Latest Trends in ATM Transaction Fees in 2025
On May 1, 2025, the Reserve Bank of India announced new fees for running ATMs that hit all banks in India. For payment transfer fees and costs in the operation of transactions:
- Free Transaction Limits
A bank facility will provide five free machine transactions independent of financial or non-financial requirements at its self-operated machine terminals.
ATM at other banks: 3 free transactions in the metro cities of Mumbai, Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.5 free transactions in non-metro (non-Delhi) areas.
- Charges Beyond Free Limits
If the number of invalid transactions made by customers exceeds their monthly limit, a ₹21 processing fee will be deducted from April 30, 2025, to April 30, 2025. From May 1, 2025, the charge for these transactions will be ₹23, with the bank administrator adding ₹2 to the fee. Price of balance inquiries on non-financial ATM services by other banks: Indian customers are charged an extra ₹1 over the previous rate of ₹6 for each non-banking balance inquiry on ATMs not authorized by their home bank.
- Interchange Fee Adjustments
Interchange is the payment system of ATM transactions, which provides funding to banks. The charges have continued to mount over recent years. For each use they make of an ATM system, customers are charged either ₹17 or ₹19 with both prices being equally likely. Asking for account balances in a new screen will typically cost the customer between ₹6 and ₹7 at the present schedule.
The fee change allows multiple financial organizations to recover costs by setting enhanced prices that focus on small banks managing restricted ATM installations.
ATM Withdrawal Limits and Charges by Bank
Under RBI guidelines banks establish their own ATM service policies by creating withdrawal restrictions and fees which depend on market segmentation and operational plans. This table displays the ATM withdrawal limits and fees which major banks apply in 2025 while further details follow.
| Bank | Daily Withdrawal Limit | Charges Beyond Free Limit (Own ATM) | Charges Beyond Free Limit (Other ATM) | International Charges |
| State Bank of India (SBI) | ₹40,000–₹1 lakh | ₹10 + GST | ₹20 + GST | ₹100 + 3.5% + GST |
| HDFC Bank | ₹25,000–₹3 lakh | ₹23 + GST | ₹23 + GST | ₹125 + GST |
| ICICI Bank | ₹25,000–₹3 lakh | ₹20 + GST | ₹20 + GST | ₹150 + GST |
| Axis Bank | ₹20,000–₹3 lakh | ₹23 + GST | ₹23 + GST | ₹125 + GST |
| Punjab National Bank (PNB) | ₹25,000–₹50,000 | ₹20 + GST | ₹20 + GST | ₹100 + GST |
Additional Details
- The transaction limits at SBI differ based on the card type where the Classic offers ₹40,000 and Platinum enables up to ₹1 lakh.
- HDFC Bank customers who maintain the Imperia premium account have access to ₹3 lakh in daily withdrawal capacity.
- The ATM users of ICICI Bank must pay ₹8.50 per non-financial transaction whenever they exceed their free transaction limits at other bank machines.
- The Burgundy cardholders of Axis Bank access better card limits and special priority services.
- PNB: Offers a modest range, suitable for basic account holders.
The specified fees do not include GST (18%) that applies to the basic fee amount.
Impact of New Rules on ATM Users in 2025
New ATM withdrawal limits and transaction fees of 2025 will influence customers in varying ways.
- Users who surpass their free ATM transaction availability now pay higher fees amounting to ₹23 per transaction rather than ₹21 per transaction due to the new rules.
- Users in rural areas can perform five no-cost withdrawals at ATMs belonging to different banks in locations outside metro zones however additional transactions beyond these five remain expensive.
Tips for Managing ATM Withdrawal Limits
- Free ATM access is possible only when you use your bank’s network of machines, so avoid paying interchange fees.
- When you withdraw money at once during your daily withdrawal limit period it reduces the number of necessary ATM transactions.
- The use of UPI or debit cards or net banking for payments will help you protect your free ATM withdrawal rights.
- You should contact your financial institution about increasing your ATM withdrawal limit when necessary and accept their decision on the change.
- Users should do cashback transactions through Point of Sale (POS) terminals primarily at grocery stores to eliminate ATM fees.
Conclusion
In 2025 India’s payment environment will appear through the total daily withdrawal limits and transaction fees at ATMs. Costs for ATM transactions will increase from ₹23 per transaction from May 1, 2025 as banks set their limits from ₹10,000 to ₹3 lakh. Building knowledge about your bank’s policies will help saving both money and time regardless of whether you choose SBI or HDFC or another financial institution.
Your best move is to plan your ATM withdrawals using digital tools along with adjusting to updated rules for achieving maximum benefit from ATMs. Mastering these updates positions you for a cashless future which India is pursuing because you will be ready for both 2025 and additional future years.
