By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
Disclaimer: The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.
Apply for Loans Fast and Hassle-Free
Subscribe Now
About the author
LoansJagat Team
‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
Related Blog Post
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
20+
Banks & NBFCs Offers
Other services mentioned in this article
Mayesha, a 28-year-old content creator from Delhi, nearly dropped her phone when she saw ₹2,115 mysteriously disappear from her account last month. The culprit? Her own bank's hidden charges - ₹623 for exceeding ATM limits, ₹450 in minimum balance penalties, ₹382 from UPI merchant payments, ₹510 in credit card fees, and ₹150 for cheque-related services.
Like most millennials, she'd ignored the "terms and conditions," assuming digital banking was cost-free. Now, as she stares at her dwindling balance, Mayesha realises these small deductions are silently eating into her hard-earned money.
ATM withdrawal charges are a hidden cost that can silently reduce your bank balance, especially when you are not aware of them. In 2025, the RBI increased the ATM interchange fees, which directly affect customers who cross their free transaction limits.
From May 1, 2025, the RBI has increased charges on ATM cash withdrawals. Now, if you withdraw cash from an
ATM after crossing your monthly free transaction limit, you will be charged ₹23 per transaction. Earlier, this charge was ₹21.
Read More – Is Your Bank Charging Hidden Fees?
Every customer gets some free ATM transactions every month:
From Own Bank’s ATM: 5 free transactions in a month (including financial and non-financial).
From Other Bank’s ATM:
After these limits, each extra transaction will be charged ₹23.
Ajay, a 28-year-old software engineer living in Bengaluru, earns a monthly salary of ₹60,000. He uses ATMs often for cash withdrawals.
Ajay crossed his monthly free transaction limit and ended up paying ₹76 as extra charges. If he had planned his transactions, he could have avoided these charges.
ATM withdrawal charges may seem small, but if you ignore them, they can affect your monthly budget. Ajay’s story teaches us that with a little planning and awareness, you can avoid these unnecessary charges.
Minimum Balance Non-Maintenance Charges (MBNMC) are hidden bank charges that can silently deduct money from your account if you do not maintain the required minimum balance in your savings account.
Banks expect customers to maintain a certain minimum balance, which depends on the account type and location. If you do not maintain this balance, the bank deducts penalty charges from your account.
Bank | Minimum Balance Requirement (Metro/Urban) | Penalty Charges for Non-Maintenance |
SBI | ₹3,000 (Metro), ₹2,000 (Semi-Urban), ₹1,000 (Rural) | ₹10–₹15 + GST based on how much balance is short |
HDFC Bank | ₹10,000 (Metro/Urban), ₹5,000 (Semi-Urban) |
Ankur is a college student from Bengaluru who has a savings account in HDFC Bank.
Date | Transaction Type | Amount (₹) | Closing Balance (₹) |
April 1 | Opening Balance | — | 5,000 |
Average Monthly Balance (AMB) Calculation
AMB = (Total of daily closing balances in April) / 30
Total = ₹212,500
AMB = ₹212,500 ÷ 30 = ₹7,083.33
Penalty = 6% of ₹2,916.67 = ₹175
(Since ₹175 is less than the ₹600 maximum, the penalty is ₹175)
So, ₹175 was deducted from Ankur’s account as a penalty.
To avoid MBNMC, it is important to check your account and understand your bank’s rules regularly.
Unified Payments Interface (UPI) has transformed digital payments in India, but in 2025, some specific UPI transactions now come with fees, which can feel like hidden charges if you are not aware of them.
From April 1, 2023, the National Payments Corporation of India (NPCI) introduced an interchange fee on certain UPI transactions. This fee applies only to merchant payments made through Prepaid Payment Instruments (PPIs) like wallets – Paytm, PhonePe, Google Pay – when the amount exceeds ₹2,000.
Think of it like a toll charge that kicks in only when you take a specific payment route (via wallet) and only above a certain speed (₹2,000).
Transaction Type | Notes |
Bank Account to Bank Account (P2P) | No fee. |
Wallet to Merchant (P2M) > ₹2,000 | 1.1% interchange fee is applied. |
Wallet to Merchant (P2M) ≤ ₹2,000 | No fee. |
Note: The fee is charged to merchants, but some may pass it on to customers. So in practice, you might end up paying extra.
Let’s look at a real-life scenario:
It is like ordering food and suddenly seeing a mysterious “packaging fee” added at checkout.
Here are some smart ways to dodge the extra costs:
1. Direct payments from your bank account using UPI remain completely free.
Up to ₹600 or 6% of the shortfall, whichever is less |
ICICI Bank | ₹10,000 (Metro/Urban), ₹5,000 (Semi-Urban) | ₹100 + 5% of the shortfall |
PNB | ₹2,000 (Urban), ₹1,000 (Semi-Urban), ₹500 (Rural) | ₹600 (Urban), ₹500 (Semi-Urban), ₹400 (Rural) |
Yes Bank | ₹10,000 (All Locations) | 5–10% of shortfall, max ₹500/month |
Deposit |
2,000 |
7,000 |
April 10 | Withdrawal | 1,000 | 6,000 |
April 15 | Deposit | 3,000 | 9,000 |
April 20 | Withdrawal | 2,000 | 7,000 |
April 25 | Deposit | 1,000 | 8,000 |
April 30 | Withdrawal | 500 | 7,500 |
Bank Account to Merchant (P2M)
No fee. |
*T&C Apply
2. Keep Payments Below ₹2,000 When Using Wallets: If you are using a wallet like Paytm or PhonePe, try to keep the amount under ₹2,000 to stay in the no-fee zone.
3. Ask the Merchant: Before making a wallet payment, confirm if the merchant will pass the interchange fee to you.
4. Use UPI Lite for Small Transactions: For micro-payments, UPI Lite is a great option. It is fast, simple, and free of such charges.
UPI has made payments easier, faster, and safer – but with these new rules, being informed is your best protection. Whenever possible, choose bank account UPI payments to steer clear of any hidden fees.
5. Debit and Credit Card Charges
In today’s digital age, the use of debit and credit cards is increasing rapidly. But along with these cards, some hidden charges can silently reduce your account balance.
State Bank of India (SBI) increased its debit card annual maintenance charges from April 1, 2024.
Card Type | Old Charges (₹) | New Charges (₹) |
Classic/Silver/Global/Contactless | ₹125 + GST | ₹200 + GST |
Yuva/Gold/Combo/My Card (Image Card) | ₹175 + GST | ₹250 + GST |
Platinum | ₹250 + GST | ₹325 + GST |
Pride/Premium Business | ₹350 + GST | ₹425 + GST |
Apart from these, there are extra charges for card replacement, duplicate PIN generation, and international transactions.
Credit cards also come with various types of charges:
Example: Rohan’s Card Usage
Rohan is a salaried professional. He has an SBI Platinum Debit Card and an HDFC Credit Card.
By using your debit and credit cards wisely, you can avoid unnecessary charges. Always keep an eye on your transactions and make informed decisions.
Even in today’s digital age, many people still use cheque books and demand drafts (DDs) — especially for official and offline transactions. But these services often come with hidden charges that can quietly reduce your account balance.
Banks like the State Bank of India (SBI) give limited free cheque leaves to customers. After that, extra cheque books come with charges.
Cheque Book Type | Charges (₹) + GST | Remarks |
10 leaves | ₹40 + GST | The first 10 leaves are free per financial year |
25 leaves | ₹75 + GST | Charges apply after the free quota |
Emergency Cheque Book (10 leaves) | ₹50 + GST | For urgent needs |
Note: Senior citizens get a discount on cheque book charges.
DDs are a secure payment method, but banks charge for issuing and cancelling them.
DD Amount Range | Issuance Charges (₹) + GST |
Up to ₹5,000 | ₹25 + GST |
₹5,001 to ₹10,000 | ₹50 + GST |
₹10,001 to ₹1,00,000 | ₹100 + GST |
Above ₹1,00,000 | ₹5 per ₹1,000 + GST |
Service | Charges (₹) + GST |
DD Cancellation | ₹200 + GST |
DD Revalidation | ₹200 + GST |
Note: DD is valid for 3 months. After that, it needs to be revalidated.
Example: Ramesh's Experience
Ramesh is a businessman with a savings account in SBI.
Cheque books and demand drafts can be convenient, but understanding their charges and knowing how to avoid them can save you money.
In 2025, hidden bank charges – like ATM withdrawal fees, minimum balance penalties, UPI transaction costs, card maintenance fees, and cheque/DD charges – can silently erode your savings if overlooked. While digital banking offers convenience, staying informed about these costs is crucial to avoid unnecessary expenses.
Small fees add up over time, impacting your financial health. By planning transactions, maintaining minimum balances, opting for fee-free payment methods, and reviewing bank policies, you can minimise these deductions. Awareness and proactive management are key to ensuring your hard-earned money stays where it belongs: in your account. Always read the fine print and adapt your banking habits to save smarter.
1. Why am I being charged for ATM withdrawals?
Banks charge fees when you exceed your monthly free ATM transaction limit, which varies based on your bank and location.
2. Do UPI payments have hidden charges?
Most UPI transactions are free, but a 1.1% fee applies on wallet-based merchant payments above ₹2,000, which some merchants may pass to you.
3. How can I avoid minimum balance penalties?
Maintain the required average balance in your account or switch to a zero-balance account to avoid non-maintenance charges.
