ATM Rule To Be Changed From April 1: UPI Withdrawals Counted, And Limits Tightened

Several major banks are set to implement revised ATM usage rules that will directly affect how customers withdraw cash, use UPI at ATMs and incur transaction charges. These rules are to be introduced in HDFC Bank, Punjab National Bank (PNB) and Bandhan Bank, starting from April 01, 2026. These changes are reflecting a broader shift in the banking sector towards a digital banking ecosystem while tightening regulations related to ATM usage.

Changes In HDFC Bank

One of the most notable changes that has been introduced is by the HDFC Bank. The bank will include UPI-based cash for withdrawals within the monthly free ATM transaction limit. Earlier cardless withdrawals using UPI were considered different and had a different set of formalities. However, from April 01, 2026, they will be counted as a part of regular debit card transactions. Customers who rely heavily on UPI for ATM transactions will be exhausting their monthly quota much faster. Once the limit is exceeded, a charge will be applied per transaction of Rs 23 and this will be met with additional applicable taxes. As of now, customers are allowed five transactions at any HDFC Bank ATM and a limited number of transactions at other bank ATMs, depending upon their location.

Changes In Punjab National Bank

Punjab National Bank (PNB) is revising the daily cash withdrawal limit for its debit card users. Under the new rules proposed by the bank, customers will be able to withdraw between Rs 50,000 and Rs 75,000 per day, which would be dependent on their card type. This might be a reduction for some of its users, as earlier limits for certain cards went up to Rs 1 lakh and more. This rule is aimed at affecting customers who rely on ATMs for large cash withdrawals. This would further require them to plan their transactions more carefully.

Changes In Bandhan Bank

Bandhan Bank is introducing changes to its ATM transaction structure. As per the new rules introduced, customers will be allowed up to five free financial transactions per month at the bank’s own ATMs. Any non-financial activity, such as a balance enquiry on the respective banks' machines, will remain unlimited. The rules become stricter when using ATMs of other banks. Customers in metro cities will get only three transactions made free, while those who are in non-metro cities will get five free transactions. Once the free limit is exhausted, Bandhan Bank will levy Rs 23 per financial transaction and Rs 10 for non-financial activities. If a transaction fails due to a lack of sufficient funds, a penalty of Rs 25 will be charged to the user.

By encouraging users to opt for digital transactions by making ATM usage more rational, banks are revising their policies and transaction formalities. For customers reliant on ATMs, this means being more mindful of withdrawal habits. These ATM rules indicate a clear trajectory where the banking norms are headed.