Kotak Mahindra Bank Hikes ATM Charges from May 2025, Financial Transactions to Cost More

Kotak Mahindra Bank Hikes ATM Charges from May 2025, Financial Transactions to Cost More Aug, 7 2025

Kotak Mahindra Bank ATM Charges Set to Rise

Get ready to pay more at the ATM if you’re with Kotak Mahindra Bank. From May 1, 2025, the bank has decided to hike fees for ATM transactions, following what the Reserve Bank of India (RBI) wants across the country. Now, if you reach your limit of free transactions in a month and need to use the cash machine again, that extra withdrawal will cost you ₹23 per transaction. That’s a clear jump from the previous ₹21. Not just that, simple things like checking your balance or getting a mini-statement at the ATM will also get pricier – ₹10 per non-financial transaction, up from ₹8.5.

It’s not just Kotak ATMs that will enforce these new rates. The changes will show up no matter whose ATM you use—your own bank or any other bank's machine. However, there’s a little relief: the number of free ATM transactions you get each month stays the same as before, depending on the kind of account you have. So, only if you go over that free quota will the new charges hit you. The bank spread the word through emails to their customers, making sure nobody’s caught off-guard when the higher rates kick in.

Why the Sudden Change – And Who Feels It?

The big reason behind this adjustment is a recent RBI guideline that tells all banks to follow the same rules on ATM transaction charges. The RBI wants things simple and uniform, so people get treated the same no matter which bank's ATM they use. That’s why Kotak Mahindra Bank updated its fee structure to fit this new approach.

So who gets affected? In short, all Kotak customers, whether you use ATMs for regular withdrawals, mini statements, or just checking your balance a little too often. But, for those sticking to their free monthly transaction limit—which is still based on your account type—there’s no need to worry about the new fees. It's the extra runs to the ATM that will cost more. This move isn’t unique to Kotak either. Other major banks are likely following this RBI-guided structure, or will soon.

Here's a quick look at the Kotak Mahindra Bank ATM fee changes:

  • Financial transaction (cash withdrawal) after the free limit: ₹23 per transaction (previously ₹21)
  • Non-financial transaction (balance check, mini statement) after the free limit: ₹10 per transaction (previously ₹8.5)
  • Charges apply equally at both Kotak and other bank ATMs
  • Monthly free transaction limits are not changing

If you rely on the ATM for most banking needs, it might be time to keep better track of your monthly usage or look for digital workarounds when possible. With this new RBI-backed system, higher ATM fees could soon be the new normal across India’s entire banking landscape.