In a move aimed at simplifying banking rules, major lenders including HDFC Bank and Punjab National Bank will introduce new ATM withdrawal guidelines starting April 1, 2026. The changes are designed to bring uniformity between debit card and UPI-based cash withdrawals while improving transparency for customers.
Under the revised rules, UPI-based ATM withdrawals will now be counted within the monthly free transaction limit. Earlier, such withdrawals were treated separately and did not impact the free quota. With this update, cardless cash withdrawals done through UPI will be treated the same as debit card transactions, making the system more consistent across withdrawal methods.
Banks have also clarified that customers exceeding their free transaction limit will be charged ₹23 per transaction, along with applicable taxes. Currently, HDFC Bank offers 5 free ATM withdrawals per month, while other banks allow 3 free transactions in metro cities and 5 in non-metro areas. The revised framework aims to standardize charges and make fee structures clearer for users.
UPI-based ATM withdrawals work by scanning a QR code displayed on the ATM and authorising the transaction through a UPI app, after which cash is dispensed. Meanwhile, Punjab National Bank has announced changes to daily withdrawal limits for certain debit cards from April 1, though exact limits are yet to be specified. Banks have advised customers to review their usage, verify applicable rules and plan transactions carefully to avoid extra charges, as the changes push towards a more unified and digital-friendly banking experience.
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