New ATM rules that banks like HDFC Bank, Punjab National Bank (PNB), and Bandhan Bank are introducing from April 1, 2026

Kokila Chokkanathan
🗓 Why These New Rules Are Coming

With the new financial year starting April 1, 2026, major indian banks are revising ATM withdrawal norms, including free limits, daily cash caps, charges and how UPI cash withdrawals are counted. These changes are data-aligned with broader regulatory and cost management guidelines and affect how you access cash across ATMs.

📌 1. hdfc bank — UPI Withdrawals Now Count Toward Free Limit

  • UPI‑based cash withdrawals at ATMs (e.g., via QR or app) will now count toward your monthly free ATM transaction limit, instead of being treated separately.
  • Once you exceed the free limit, hdfc will charge about ₹23 per additional withdrawal (plus applicable taxes).
  • This applies whether you withdraw cash with a debit card or via UPI.
What this means:
If you regularly use ATMs or UPI cash withdrawals, you might hit your free limit sooner and start paying fees.

📊 2. PNB — Lower Daily Cash Withdrawal Limits

  • Punjab National bank (PNB) has reduced daily withdrawal limits on several categories of debit cards.
  • For example:
    • For many standard cards, the cap has been cut from ₹1 lakh to ₹50,000 per day.
    • For some premium cards, limits have fallen from ₹1.5 lakh to ₹75,000 per day.
What this means:
PNB customers wanting larger sums of cash at once may need to make multiple ATM visits or plan ahead.

💳 3. Bandhan bank — Revised Free Transaction Counts and Charges

  • Bandhan Bank has updated its free ATM usage rules:
    • Up to 5 free financial transactions per month at Bandhan ATMs.
    • At other banks’ ATMs, customers get fewer free transactions — usually 3 in metro cities and 5 in non‑metro areas.
    • Beyond the free limits, each financial transaction carries a charge (around ₹23 plus GST).
    • Non‑financial trans­actions (like balance inquiry) may also attract a smaller charge (e.g., ₹10).
What this means:
If you use ATMs outside your own bank’s network frequently, you could see higher charges once free limits are crossed.

💡 Other Points to Know

📍 Free vs Paid Transactions

Across banks, free ATM limits are being standardized, but exceeding them will result in per‑transaction fees — so frequent cash withdrawals will cost more.

📍 Inclusion of UPI Withdrawals

Including UPI cash withdrawals in free limits means that even if you don’t use your debit card but use your phone to withdraw, it counts toward your free quota.

📍 Broader Trend

These changes are part of a trend to promote digital payments and manage banks’ ATM operating costs, while giving customers clearer fee structures.

🧠 Tips for Customers

  • Check your bank’s exact free withdrawal limits for your account type.
  • Use UPI cash withdrawals sparingly if you’re close to your free limit.
  • If you mostly use other banks’ ATMs, plan to minimize extra charges.
  • Consider digital payments or cashless options to reduce dependency on ATMs.
 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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