Starting May 1, 2025, customers of Kotak Mahindra Bank will have to shell out more money for using ATMs. The bank has revised its ATM transaction charges, increasing the cost of financial and non-financial services. The hike comes following the recent directive issued by the Reserve Bank of India (RBI), which allows banks to raise ATM transaction fees.

Let’s take a look at the new charges, the number of free transactions allowed, and the daily withdrawal limits as per your account type.

As per Kotak Mahindra Bank’s official announcement, the fee for financial transactions at ATMs (like cash withdrawals, fund transfers, and bill payments) will be increased from ₹21 to ₹23 per transaction starting May 1, 2025.

This charge applies when customers exceed their monthly free transaction limit, regardless of whether they use a Kotak ATM or any other bank’s ATM.

Not just withdrawals – Kotak has also raised charges for non-financial ATM services, including:

• Checking account balance

• Requesting mini-statements

• Changing ATM PIN

• Ordering a cheque book

The fee for these non-financial services will increase from ₹8.50 to ₹10 per transaction once the free usage limit is crossed.

Customers are entitled to five free ATM transactions per month. These can include any mix of financial or non-financial activities. After these five free uses, charges will apply as per the revised rates mentioned above.

So, to avoid unnecessary fees, customers are encouraged to keep a track of their monthly ATM usage.

The maximum amount a customer can withdraw in a single day from a Kotak Mahindra Bank ATM depends on the type of account they hold:

• Edge, Pro, or Ace accounts: ₹1,00,000 withdrawal limit per day

• Easy Pay accounts: ₹25,000 withdrawal limit per day

These limits remain unchanged as of now, and customers can continue using their cards accordingly.

Kotak Mahindra Bank has already informed its customers via email about the upcoming revision in charges. The changes align with the RBI’s updated guidelines, which permit banks to charge up to ₹23 for ATM withdrawals beyond free limits.

To avoid extra charges:

• Limit your ATM usage to within the five free transactions per month

• Use digital banking or mobile banking apps for services like balance checks or fund transfers

• Track your transactions through SMS alerts or bank apps

• Plan withdrawals smartly to minimize ATM visits

While the hike in ATM charges may seem small, they can add up if you're frequently using ATM services beyond the free limits. Kotak Mahindra Bank’s new fee structure is a reminder for customers to go digital wherever possible and optimize their banking habits. Stay informed and make the most of your free transactions each month!