Introduction
Starting April 1, 2026, several major banks in India—including hdfc bank, punjab National bank, and Bandhan Bank—are revising their ATM usage rules. These changes will affect free transaction limits, withdrawal caps, and charges, impacting everyday banking for customers.
Key Highlights of the Changes
- Revision in free ATM transaction limits
- Changes in daily withdrawal limits
- Inclusion of UPI-based ATM withdrawals in limits
- Revised charges for exceeding limits
These updates are aligned with broader efforts to streamline banking costs and promote wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital payments.
HDFC Bank: UPI Withdrawals Now Count as ATM Transactions
What’s Changing?
- UPI-based cash withdrawals at ATMs will now be counted within the monthly free transaction limit
- Earlier, these were treated separately
Free Transaction Limits
- 5 free transactions at own bank ATMs
- 3 free transactions at other bank ATMs in metro cities
- 5 free transactions in non-metro cities
Charges
- ₹23 per transaction (plus taxes) after exceeding the limit
Additional Update
- Transactions after 7:30 PM may be counted as next day’s usage, affecting monthly limits
👉 Impact: Frequent ATM or UPI cash users may hit limits faster and incur extra charges.
Punjab National bank (PNB): Reduced Withdrawal Limits
What’s Changing?
PNB has reduced daily ATM withdrawal limits for select debit cards.
New Limits
- From ₹1,00,000 → ₹50,000 (for some cards)
- From ₹1.5 lakh → ₹75,000 (for premium cards)
👉 Impact: customers may need to plan withdrawals more carefully, especially for large cash needs.
Bandhan Bank: Revised Free Transaction Rules
Free Transactions
- 5 free financial transactions at Bandhan bank ATMs
- Unlimited non-financial transactions (like balance enquiry)
At Other bank ATMs
- Metro cities: 3 free transactions
- Non-metro cities: 5 free transactions
Charges After Limit
- ₹23 per financial transaction
- ₹10 per non-financial transaction
- ₹25 penalty for failed transactions due to insufficient balance
👉 Impact: customers using other bank ATMs will need to track usage more closely.
Broader banking Trend
These changes reflect a wider shift in the banking sector:
- Encouraging digital payments (UPI, net banking)
- Reducing dependency on physical cash
- Managing ATM operational costs efficiently
What customers Should Do
- Track monthly ATM transactions to avoid extra charges
- Prefer digital transactions where possible
- Check card-specific withdrawal limits
- Plan large withdrawals in advance
Conclusion
The new ATM rules coming into effect from april 1, 2026, mark a significant shift in how customers access cash. With stricter limits, inclusion of UPI withdrawals, and revised charges, users must be more mindful of their ATM usage to avoid unnecessary fees.
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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