Some of the country’s biggest names in the banking sector have announced changes in fees they charge for the services they offer to their customers. Recently, banks like ICICI Bank, Axis Bank and Federal Bank have announced a revision in the charges for their services like ATM transactions, cash deposit, cash withdrawal, IMPS and demand draft (DD).
Last month, several PSU banks announced changes in their ATM charges as per RBI guidelines. Now when private banks like ICICI Bank and Axis Bank have also joined it, it is going to have a direct impact on the common customer.
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ICICI Bank ATM charges: New rates applicable from 1 July 2025
In a notification sent to the customers, the private sector bank informed that from July 1, 2025, fees will be revised for ATM withdrawals, cash deposits, IMPS and demand drafts.
Transaction charges applicable at non-ICICI bank ATMs
-The first 3 transactions (inclusive of financial and non-financial) in 6 metro locations (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) in a month – Free
-The first 5 transactions (inclusive of financial and non-financial) in all other locations in a month – Free
-A maximum of 5 transactions are free in a month with a cap of 3 free transactions in 6 metro locations
-Thereafter, Rs 21 (exclusive of Goods and Service Tax) per financial transaction and Rs 8.50 (exclusive of Goods and Service Tax) per non financial transaction.
(Note: 18% Goods and Service Tax (GST) is applicable on the charges)
International ATM transactions
Customers withdrawing money from ATMs outside of India will be charged Rs 125 per transaction, plus a 3.5% currency conversion cost. Customers will have to pay now Rs 25 per non-financial transactions. Senior citizens, however, are exempt from such fees.
Also read: Major changes in HDFC Bank credit card: New charges and limits effective from July 1
Demand Draft (DD)/Pay Order (PO) – Issued against cash, cheque, or transfer
Standard charges:
For amounts up to Rs 10,000: Rs 50 per DD/PO
For amounts above Rs 10,000: Rs 5 per Rs 1,000 or part thereof
Minimum charge: Rs 75
Maximum charge: Rs 15,000
Concessional rates (Applicable for senior citizens, students, and rural branch locations)
For amounts up to Rs 10,000: Rs 40
For amounts above Rs 10,000 and up to Rs 50,000: Rs 60
For amounts above Rs 50,000: Rs 5 per Rs 1,000 or part thereof
Maximum charge: Rs 15,000
NEFT charges – Outward
Through Online Channel – Nil
Through branch channel –
Up to Rs 10,000 – Rs 2.25 per transaction
Rs 10,001 to Rs 1 lakh – Rs 4.75 per transaction
Above Rs 1 lakh to Rs 2 lakh – Rs 14.75 per transaction
Above Rs 2 lakh and up to Rs 10 lakh – Rs 24.75 per transaction
RTGS – Outward
Through Online Channel – Nil
Through branch channel –
Rs 2 lakh to Rs 5 lakh – Rs 20 per transaction
Above Rs 5 lakh – Rs 45 per transaction
IMPS – Outward (With effect from 1st May 2024)
Amount up to Rs 1,000 – Rs 2.50 per transaction
Amount above Rs 1,000 to Rs 25,000 – Rs 5 per transaction
Amount above Rs 25,0000 to Rs 5 lakh – Rs 15 per transaction
Also read: Savings account rates cut: Check new interest rates of SBI, HDFC, ICICI, Canara Bank and others
Axis Bank: New rates effective from July 1
Axis Bank has also revised its ATM charges which will be effective from July 1, 2025. It will apply to all segments – Savings, NRI, Trust, Priority and Burgundy customers.
ATM free limit:
3 transactions per month free in metro cities and 5 in non-metros.
Beyond free limit charge:
Rs 23 per financial and Rs 10-12 non-financial transactions.
Federal Bank: New charges applicable from June 1
Federal Bank customers doing ATM transactions at other bank ATMs
Financial transaction:
Rs 23 per transaction (applicable to both savings and current accounts)
Non-financial transaction:
Rs 12 per transaction (applicable to both savings and current accounts)
Charges apply only after the free transaction limit is exceeded
ATM Transactions at Federal Bank ATMs
Financial Transaction: No charges
Non-Financial Transaction: No charges
Transaction decline charges – Insufficient funds
Applicable scenarios:
Withdrawal transactions at Other Bank ATMs
Purchases via E-commerce (ECOM)
Payments at Point-of-Sale (POS) machines
Charges: Rs 25 per declined transaction due to insufficient balance
Important Note: Decline charges are applicable even if the transaction occurs within the free ATM transaction limit at other bank ATMs.
Locker Rent and Penalty:
Revised rent for lockers and increased penalty on late payment.
Also read: Canara Bank offers one of the cheapest home loans – Check new home, consumer loan rates
Revised ATM Charges – HDFC Bank (Effective from 1st May 2025)
Savings & salary accounts
At HDFC Bank ATMs:
Free Transactions: 5 per month
At other bank ATMs:
Metro Cities: 3 free transactions/month
Non-Metro Cities: 5 free transactions/month
Charges beyond free limit:
Cash Withdrawal: ₹21 + taxes (₹23 + taxes from 1st May 2025)
Non-Financial Transactions (e.g., balance enquiry, mini statement, PIN change): ₹8.50 + taxes
SBI, PNB, IndusInd, Yes Bank, Kotak Bnak also revised charges in May
These banks have updated their transaction charges from May 2025 as per RBI’s ATM interchange fee revision:
Financial transactions:
Rs 23 per transaction after free limit.
Non-financial transactions:
SBI – Rs 5, PNB – Rs 11, different according to other banks.
Kotak Bank implemented Rs 23 per financial and ₹10 non-financial transactions after free limit from ATM from May 2025.
What should customers do?
In view of the increasing charges of banking services, now customers have to be more cautious. Try to transact within the free limit. Use digital payments and UPI more to avoid transaction costs. On the other hand, if you frequently exceed the free ATM limit, it may be beneficial to change the bank or consider a premium savings account.
Summing up…
The increasing charges on ATM withdrawals, IMPS, and other banking facilities are sure to affect the pockets of common customers. In such a situation, changes in banking habits and use of digital options have become the need of the hour.