From the 1st of April, 2026 several banks in India will introduced the new ATM rules that will directly impact customers withdrawing cash and manage the transactions. These changes include the counting the UPI-based cash withdrawals as ATM usage and also reducing daily withdrawal limits on the some debit cards along with it also tightening the free transaction limits.
UPI Cash Withdrawals Now Count as ATM Transactions
One of the key change is the UPI based cash withdrawal transaction. Earlier the cardless withdrawal using UPI were seen as the separate transaction from traditional ATM usage. After this change bank will treat as the UPI based transaction as part of the ATM withdrawal.
As per the new rules HDFC Bank will include the UPI cash withdrawals within the monthly free ATM transaction limit. It means that users who are frequently rely on the UPI for cash withdrawal will may exhaust their free limit faster.
As the free limit is crossed the customers will be charged by ₹23 per transaction plus the applicable taxes.
With this change it will close the earlier situation where the UPI withdrawals were relatively cost-free and iy was widely used.
Daily Withdrawal Limits Reduced on Debit Cards
Another update comes from the Punjab National Bank. They have reduced the daily withdrawal limits on the several debit card categories.
The revised limits include the,
- Standard debit cards: Reduced from ₹1,00,000 to ₹50,000 per day
- Premium cards: Reduced from ₹1,50,000 to ₹75,000 per day
It means that customers who have the need for the larger amounts of cash they have to plan the withdrawals across the multiple days.
Fewer Free Transactions on Other Bank ATMs
Bandhan Bank has also revised the ATM usage policy and specially for those transactions which are conducted at the other banks ATMs.
At Bandhan Bank ATMs the customers can continue to enjoy up to the five free transactions per month but the non-financial transactions limit remain unlimited.
However at other bank ATMs
- Metro cities: Only 3 free transactions per month
- Non-metro cities: Up to 5 free transactions
After crossing these free limits bank will charge,
- ₹23 per financial transaction
- ₹10 per non-financial transaction
- ₹25 penalty for failed transactions due to insufficient balance
How These Changes Will Affect Customers
These new rules may not impact the occasional users significantly but for those who use frequent ATM and they will see the difference.
Customers who regularly use the,
- UPI for cardless withdrawals
- ATMs of other banks
- High daily cash withdrawals
are more likely to pay the additional charges.
RBI Tightens Forex Market Controls With ...
RBI Payments Vision 2028: Big Shift Towa...
Now Get Home Loan From Anywhere: NHB Lau...
