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From April 1, 2026, major banks in India have revised their ATM usage rules, directly impacting how customers withdraw cash and use banking services. Leading lenders like HDFC Bank, Punjab National Bank, and Bandhan Bank have updated their policies related to free transaction limits, charges, and withdrawal rules.

These changes come with the new financial year and are expected to affect millions of bank customers across the country. Here’s a detailed breakdown of what has changed and how it may impact you.

HDFC Bank: UPI ATM Withdrawals Now Count in Free Limit

HDFC Bank has introduced a key change that could affect frequent ATM users.

What’s New?

• Cardless cash withdrawals via UPI will now be counted within the monthly free ATM transaction limit
• Once the free limit is exhausted, a charge of ₹23 per transaction (plus taxes) will apply

Current Free Limits

• Own bank ATM: 5 free transactions per month
• Other bank ATMs:
  • Metro cities: 3 free transactions
  • Non-metro cities: 5 free transactions

Impact

Customers using UPI-based ATM withdrawals frequently may reach their free limit faster than before.

Punjab National Bank (PNB): Reduced Cash Withdrawal Limits

Punjab National Bank has revised daily withdrawal limits for certain debit cards.

Key Change

• Daily ATM cash withdrawal limits have been reduced for select card variants

What You Should Do

• Check your specific debit card’s updated withdrawal limit
• Plan large cash withdrawals accordingly to avoid inconvenience

Bandhan Bank: New Charges After Free Limit

Bandhan Bank has also updated its ATM transaction rules.

Free Transactions

• Own ATM:
  • 5 free financial transactions per month
  • Non-financial transactions (like balance check) remain unlimited
• Other bank ATMs:
  • Metro cities: 3 free transactions
  • Non-metro cities: 5 free transactions

Charges After Limit

• Financial transactions: ₹23 per transaction
• Non-financial transactions: ₹10 per transaction

What Do These Changes Mean for Customers?

These updates are aimed at regulating ATM usage and encouraging digital transactions. However, for customers, it means:

• Monitoring monthly ATM usage more closely
• Avoiding unnecessary withdrawals
• Being mindful of UPI-based ATM transactions

Tips to Avoid Extra Charges

To minimize ATM fees, follow these simple steps:

• Track your free transaction limit regularly
• Prefer digital payments like UPI or net banking
• Withdraw larger amounts in fewer transactions instead of multiple small withdrawals
• Use your own bank’s ATM whenever possible

Final Takeaway

The new ATM rules from April 1, 2026, highlight a shift towards more controlled usage and digital banking. While the free transaction limits remain largely similar, the inclusion of UPI withdrawals and revised charges means customers need to be more careful.

Understanding these changes will help you manage your banking habits better and avoid unnecessary charges in the new financial year.