New Delhi: Starting April 1, 2026, major banks including HDFC Bank and Punjab National Bank (PNB) will implement new ATM rules, impacting how customers withdraw cash from ATMs. The changes aim to standardize charges across card-based and UPI-based cash withdrawals while enhancing transparency for customers.
One of the key updates is that UPI-based ATM withdrawals will now be counted within the monthly free transaction limit. Previously, cash withdrawals via UPI were treated separately and did not count towards the free transaction quota. With the new rules in effect, cardless withdrawals initiated through UPI will be included in the customer’s free ATM transaction count, aligning them with traditional debit card withdrawals.
₹23 Fee for Transactions Beyond Free Limit
Banks have clarified that if customers exceed their allotted free ATM transactions, they will be charged ₹23 per additional transaction, including applicable taxes. Currently, HDFC Bank allows five free ATM withdrawals per month, while other banks permit three free transactions in metro cities and five in non-metro areas. The new rules are intended to create a uniform fee structure and ensure greater clarity for all types of ATM cash withdrawals.
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How UPI-Based ATM Withdrawals Work
UPI-based ATM withdrawals allow customers to withdraw cash without using a debit card. The process involves scanning a QR code displayed on the ATM and approving the transaction through the UPI app linked to the customer’s bank account. Once authorized, the ATM dispenses the cash. Many banks are expanding this service to integrate digital payments with cash withdrawals, offering customers more convenience and flexibility.
Changes at PNB
PNB has also announced adjustments to ATM withdrawal limits for certain debit card categories, effective April 1. While the exact daily limits for different card types have not been disclosed yet, the bank has confirmed that some cards will have reduced daily withdrawal allowances. Customers are advised to check the specific limits applicable to their debit cards once the new rules are implemented.
Customer advisory
Banks are urging their customers to verify whether the new rules apply to their debit cards and plan their withdrawals accordingly. For larger transactions, customers are encouraged to use digital payment methods such as UPI or net banking, which are increasingly being integrated with ATM services to reduce dependency on cash withdrawals.
Financial experts say that these updates will require customers to monitor their monthly ATMusage more closely. By incorporating UPI-based cash withdrawals into the free transaction count, banks are aiming to harmonize digital and physical withdrawal methods, making banking more transparent and efficient.
A Step Toward a Unified Banking Experience
Overall, the new ATM rules coming into effect from April 1 mark a significant step towards a more digital-friendly and standardized banking environment. Customers are advised to prepare for the changes by reviewing their withdrawal patterns and adapting to the updated transaction limits. Experts highlight that while the charge of ₹23 for extra withdrawals may seem modest, careful planning will help avoid unnecessary fees, especially for frequent ATM users.
