Axis Bank has introduced amendments to its tax rates on savings and trust accounts, which are scheduled to come into effect on July 01, 2025
Saloni Kumari | Jun 3, 2025 |
Axis Bank Amends Fee for Exceeding Minimum Free ATM Transaction Limit, Effective From July 1
Axis Bank has introduced changes to its tax rates on savings and trust accounts, which are scheduled to come into effect on July 01, 2025. The bank is updating the fee charged on ATM transactions when the minimum free limit is exceeded. These rates will be valid for both Axis and non-Axis ATMs. These revised tax rates will be valid for widespread account holders having savings, NRI, and trust accounts in Axis Bank and also priority and burgundy segment customers.
In accordance with the official notification issued by the RBI on March 28, 2025, “The ATM interchange fee will be as decided by the ATM network.” The notification further states, “Beyond the free transactions, a customer may be charged a maximum fee of Rs 23 per transaction. This shall be effective from May 1, 2025. Applicable taxes, if any, shall be additionally payable. These instructions will also apply, subject to modification, to transactions conducted at Cash Recycler Machines (excluding cash deposit transactions).”
The ATM interchange fee is the amount that is paid by one bank to the other for providing ATM services to its customers. This facility helps customers withdraw cash from their bank accounts in emergencies using any bank’s ATM. Banks do not pay this amount completely by themselves; some part of this amount is also taken from the customers using the service via their banking charges.
For example, if you are a customer of HDFC Bank and you use an ATM of SBI Bank for the purpose of withdrawing money, and you are a resident of Delhi. If you make more than four transactions from the SBI’s ATM, then as a customer of HDFC Bank, you will be charged a particular amount for exceeding the fourth transaction.
The revised Axis Bank ATM charges for exceeding the minimum transaction limit are set to come into effect on July 01, 2025. The charges have now increased in comparison to previous ones. The following is the comparison:
Hence, basically, two rupees have been increased in comparison to the existing charge for all financial transactions crossing the minimum limit of free transactions, as set by the Axis Bank.
The Reserve Bank of India (RBI) has notified the minimum free ATM transaction limit permitted each month to customers.
Customers resident in metro cities are allowed to make a minimum of three free transactions using ATMs per month. While those residents of non-metro cities are permitted to make a minimum of five free transactions per month.
HDFC Bank
State Bank of India (SBI)
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