Every savings account holder in India gets a set number of free ATM transactions each month. After that, the bank can charge a fee. The Reserve Bank revised the maximum fee in 2025, and the free limits have stayed the same. Here is how it works in 2026.
Free transactions per month
| Where you use the card | Free transactions per month |
|---|---|
| Your own bank’s ATMs (any city) | 5, including financial and non-financial |
| Other banks’ ATMs in the six metro centres | 3 |
| Other banks’ ATMs in all other places | 5 |
The six metro centres are Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. A trip to Kochi, Pune or Coimbatore counts as non-metro, so the five-free rule applies there.
The fee after the free limit
From 1 May 2025, banks can charge up to ₹23 per transaction beyond the free limit, plus applicable taxes. Earlier the cap was ₹21. Banks may charge less, but not more.
What counts as a transaction
- Financial: a cash withdrawal.
- Non-financial: a balance enquiry, mini statement or PIN change at the machine.
At another bank’s ATM, a balance enquiry uses up one of your free transactions just like a withdrawal. Checking the balance on the bank’s app or by missed-call SMS before going to the ATM saves that slot.
Worked example
Priya lives in Chennai (a metro) and banks with Bank A. In one month she makes four withdrawals at Bank A’s ATMs and four at Bank B’s ATMs, and checks her balance once at Bank B.
- Bank A ATMs: 4 used out of 5 free. Charge: nil.
- Bank B ATMs: 5 transactions (4 withdrawals + 1 balance check), but only 3 are free in a metro. Two are chargeable: up to ₹23 × 2 = ₹46, plus tax.
Why the fee went up: interchange
When you use another bank’s ATM, your bank pays the ATM owner an “interchange” fee. From 1 May 2025 this was raised to ₹19 for a financial transaction and ₹7 for a non-financial one. The customer fee cap rose at the same time so banks could cover it. You never pay interchange directly; it explains why other-bank ATM use is the part that is rationed.
What these rules do not cover
- Deposits at cash recyclers are outside the free-transaction count (see CDM vs ATM vs cash recycler).
- Failed transactions caused by the machine are not supposed to be counted as chargeable.
- Premium accounts often come with extra free transactions. Check your account’s schedule of charges.
Find your own bank’s machines nearby to stay within the free limit: ATMs in Kerala · ATMs in Tamil Nadu · ATMs in Karnataka
Common questions
Do charges apply to Basic Savings Bank Deposit (BSBD) accounts?
BSBD accounts come with their own free-withdrawal allowance set by the bank. Check your passbook or the bank’s schedule of charges for the exact number.
Is a declined transaction because of low balance charged?
Some banks charge a separate fee when a withdrawal fails because the account does not have enough money. It is not an RBI ATM fee, so check your bank’s schedule.
When does the monthly count reset?
It resets each calendar month. Unused free transactions do not carry over.
Last checked: October 2026, against RBI circular RBI/2021-22/52 on ATM interchange and customer charges (as updated on 28 March 2025).
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