AIB has yielded to public pressure and dropped plans to introduce a fee for contactless payments.
However, it still intends to go ahead with fee changes that will hit a large number of current account customers.
From November, the 10pc of customers who have been able to avoid fees and charges by keeping a certain amount of money in their current account will no longer have that option.
The largely state-owned bank has around two million current accounts, meaning charges will apply to 200,000 customers.
At the moment, customers who keep a balance of at least €2,500 in their account at all times can avoid quarterly maintenance fees and other charges.
From November 28, AIB plans to end fee-free transactions and account management for customers who avoided fees and charges up to now.
This will mean average ann- ual costs of around €72.
It comes as rival Bank of Ireland plans to charge all its customers a monthly fee of €6 from November 23, a move that will see four out of 10 of its current account customers paying more.
AIB's withdrawal of the free banking for those who could keep €2,500 in their current account will negatively affect around one in 10 of its current account customers, it said.
They will be hit with a quarterly maintenance fee of €4.50.
In addition, transaction charges will apply.
These range from 20c for an automated transaction to 35c for an ATM withdrawal.
AIB free banking will still apply to those over the age of 66, students, those with a basic bank account provided as part of the Government's Strategy for Financial Inclusion and customers who pay their AIB home mortgage from their AIB current account.