According to government data, SBI has effectively transformed ATM cash transactions into a sizable source of fee revenue, primarily attributed to its wide-reaching network and well-defined fee regulations. 
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According to government data, SBI has effectively transformed ATM cash transactions into a sizable source of fee revenue, primarily attributed to its wide-reaching network and well-defined fee regulations. The Center has revealed that the State Bank of India (SBI) is generating substantial revenue from ATM cash withdrawals, while other public sector banks (PSBs) are facing financial challenges in this area. SBI has made a profit of Rs 2,043 crore from ATM cash withdrawals in the last five years, whereas nine PSBs have collectively incurred a loss of Rs 3,738.78 crore.
On a combined basis, Punjab National Bank (PNB) and Canara Bank are the only two PSBs besides SBI that have recorded profits of Rs 90.33 crore and Rs 31.42 crore, respectively, from ATM cash withdrawals, as per a response in the Lok Sabha.
The government's response indicates that SBI has consistently outperformed other PSBs in terms of fee income from ATM transactions over the last five years, leading to losses for the latter.
The data was shared by Pankaj Chaudhary, Minister of State for Finance, in response to a question regarding whether Public Sector Banks generate revenue from ATM cash withdrawals exceeding the prescribed limit.
Net income of PSBs from ATM cash withdrawals
| No. | Bank | FY 19-20 | FY 20-21 | FY 21-22 | FY 22-23 | FY 23-24 |
|---|---|---|---|---|---|---|
| 1 | Bank of Baroda | -70.06 | -137.03 | -184.88 | -220.30 | -212.08 |
| 2 | Bank of India | -129.82 | -119.33 | -149.28 | -75.13 | -66.12 |
| 3 | Bank of Maharashtra | -52.28 | -42.12 | -47.94 | -46.26 | -44.48 |
| 4 | Canara Bank | 22.34 | -4.81 | 15.48 | 39.52 | -41.11 |
| 5 | Central Bank of India | -95.35 | -97.75 | -69.26 | -68.24 | -17.15 |
| 6 | Indian Bank | -41.85 | -89.53 | -151.54 | -161.70 | -188.75 |
| 7 | Indian Overseas Bank | -67.76 | -63.82 | -54.64 | -60.66 | -53.35 |
| 8 | Punjab & Sind Bank | 5.28 | -5.09 | -6.90 | -9.92 | -8.70 |
| 9 | Punjab National Bank | 102.40 | 68.87 | -27.63 | -25.66 | -27.65 |
| 10 | State Bank of India | 656.00 | 228.00 | 393.00 | 435.00 | 331.00 |
| 11 | UCO Bank | -58.09 | -49.23 | -56.48 | -62.23 | -61.86 |
| 12 | Union Bank of India | 3.17 | -104.84 | -167.42 | -195.88 | -203.87 |
Chaudhary stated that in accordance with guidelines set forth by the Reserve Bank of India (RBI), customers are entitled to five free transactions per month at their own bank ATMs, covering both financial and non-financial transactions.
Additionally, customers are allotted a specified number of free transactions at other bank ATMs, with three transactions allowed in metro centres and five transactions permitted in non-metro centres. Beyond these free transactions, customers will incur charges for each ATM transaction based on the policies approved by the respective bank's Board. The maximum charge per transaction is Rs 21 plus applicable taxes, if any.
ATM withdrawal charges from May 1, 2025
The Reserve Bank of India (RBI) has approved the increase in ATM interchange fees, which refer to the amount that one bank pays another for allowing its cardholders to access their ATM services. This fee helps cover the expenses related to owning and maintaining ATMs, as well as providing specialized services to customers of other banks.
Effective immediately, customers will incur an additional charge of Rs 2 per transaction once they surpass their complimentary withdrawal limit. Furthermore, the non-transaction fee has been raised by Rs 1. Under the updated fee structure, cash withdrawals from ATMs will now cost Rs 19 per transaction, up from Rs 17. Similarly, checking account balances at ATMs will now be charged at Rs 7 per transaction, compared to the previous rate of Rs 6. These recent changes approved by the RBI will also impact credit card benefits and savings account regulations.
Bank customers are entitled to a set number of complimentary transactions (including both financial and non-financial transactions) at ATMs of other banks. The allocation for free transactions is as follows:
Three transactions in metro centres
Five transactions in non-metro centres
Once the free transaction limit is surpassed, customers will incur charges for each ATM transaction according to the approved policies of the respective bank. The maximum charge per transaction is Rs 21, plus any applicable taxes.
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