If you withdraw cash from an ATM, you may now have to pay higher fees as several banks are changing their ATM withdrawal rules. These rules will take effect on April 1, 2026. These changes affect ATM cash withdrawal limits, transaction charges, and payment methods using debit cards and QR codes. Here, we will tell you about the changes you will see when withdrawing cash from ATMs using UPI and debit cards.
Free UPI transaction limit of HDFC
HDFC Bank has made a significant change to its free UPI transaction limit: cash withdrawals from UPI-based ATMs now count toward the monthly free transaction limit. Previously, these transactions were counted separately. Under the new rule, only five transactions will be free at ATMs other than HDFC Bank. Three transactions will be free at other bank ATMs in metropolitan areas. Five transactions will be free in other cities. Once your free quota is exhausted and you withdraw money through an ATM, whether using a card or UPI, you will be charged Rs 23 per transaction. This does not include taxes. Additionally, HDFC Bank has implemented a time limit that states ATM transactions made after 7:30 pm will be counted as transactions for the next day. On the last day of the month, such transactions will be included in the next month’s quota.
What rules have changed for debit cards?
Punjab National Bank (PNB) has revised the daily withdrawal limit for some debit cards. Effective April 1, the maximum daily withdrawal limit for select cards has been reduced from Rs 1 lakh to Rs 50,000. Depending on the card category, the withdrawal limit can range from Rs 50,000 to Rs 75,000.
Transaction rules update: Customers will be allowed five free financial transactions per month at Bandhan Bank ATMs. At other bank ATMs, three free transactions will be allowed in metro areas and five in other cities. Unlike previous arrangements, both financial and non-financial transactions (including balance checks) at other bank ATMs will count towards the free limit.
What will happen after the limit is crossed?
- Financial transactions: Rs 23 per transaction
- Non-financial transactions: Rs 10 per transaction
- If the account balance is insufficient and the transaction fails, a penalty of Rs 25 will be charged
Apart from changes at individual banks, there has been a comprehensive revision to ATM charges across the banking system.
- The fee charged after the free limit is Rs 23 per transaction, up from Rs 21.
- Financial transaction: Rs 19
- Non-financial transactions: Rs 7
