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Personal Finance News

Except SBI, 11 out of 12 Government banks do not make money from ATM cash withdrawals

rajeev kumar
By Rajeev Kumar

3 min read | Updated on March 26, 2025, 11:54 IST

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SUMMARY

Contrary to the belief that banks may be making a lot of money from ATM cash withdrawals, most of the public sector banks are booking losses since 2019-20, according to data shared by the Finance Ministry.

1 मई से ATM से कैश निकालना महंगा होने वाला है।

1 मई से ATM से कैश निकालना महंगा होने वाला है।

Various media reports have speculated in the last two days that ATM cash withdrawals may become costly from May 2025.

While there is no official confirmation from banks or the Reserve Bank of India (RBI) or the Government about any hike in ATM withdrawal charges, data recently shared by the Finance Ministry suggests there might be a case for doing so.

The Finance Ministry shared data on the net income of Government-owned Public Sector Banks (PSBs) from ATM cash withdrawals on March 24, 2025, in the Lok Sabha. Surprisingly, it shows that 11 out of 12 PSBs made a combined net loss of over ₹900 crore in FY 2023-24. However, the State Bank of India (SBI) was an exception.

SBI's net income from ATM cash withdrawals was ₹331 crore in FY 2023-24. While several public sector banks booked losses from ATM cash withdrawals in previous years, SBI's net income from this has been positive since FY 2019-20 (See chart below).

Net income* of PSBs from ATM cash withdrawals

No.BankFY 19-20FY 20-21FY 21-22FY 22-23FY 23-24
1Bank of Baroda-70.06-137.03-184.88-220.30-212.08
2Bank of India-129.82-119.33-149.28-75.13-66.12
3Bank of Maharashtra-52.28-42.12-47.94-46.26-44.48
4Canara Bank22.34-4.8115.4839.52-41.11
5Central Bank of India-95.35-97.75-69.26-68.24-17.15
6Indian Bank-41.85-89.53-151.54-161.70-188.75
7Indian Overseas Bank-67.76-63.82-54.64-60.66-53.35
8Punjab & Sind Bank5.28-5.09-6.90-9.92-8.70
9Punjab National Bank102.4068.87-27.63-25.66-27.65
10State Bank of India656.00228.00393.00435.00331.00
11UCO Bank-58.09-49.23-56.48-62.23-61.86
12Union Bank of India3.17-104.84-167.42-195.88-203.87
*Income earned by bank on account of ATM cash withdrawal charges collected from customers/interchange fee earned from other banks net-off expenses in the form of interchange fees paid to other banks Data source: Lok Sabha

The Union Minister of State for Finance, Pankaj Chaudhary, shared the above data while replying to a query on whether PSBs "earn money from ATM cash withdrawals after the stipulated limit of withdrawals."

How many ATM transactions are free

In his written reply to the above query, Chaudhary also highlighted that customers are eligible for five free transactions (inclusive of financial and non-financial transactions) every month from their own bank ATMs, as per RBI’s guidelines on the Usage of Automated Teller Machines/Cash Recycler Machines – Review of Interchange Fee and Customer Charges dated June 10, 2021.

Further, bank customers are eligible for a fixed number of free transactions (inclusive of financial and non-financial transactions) from other bank ATMs as follows:

  • Three transactions in metro centres
  • Five transactions in non-metro centres

“Beyond the free transactions, charges are levied for each ATM transactions, as per the respective Board approved policies of banks, and the ceiling/cap is ₹21 (plus applicable taxes, if any) per transaction," Chaudhary said.

Upstox

About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

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