ATM rule changes from April 1: UPI withdrawals, limits, fees reset

ATM withdrawals get costlier from April 1 as banks tighten limits and free-usage rules

Several banks are tightening how often and how much you can withdraw from ATMs, with new charges kicking in from April 1, 2026. The changes affect UPI-based cash withdrawals, daily limits on select debit cards, and the number of free transactions.

 

UPI cash withdrawals to be treated like ATM usage

 

HDFC Bank will count UPI-based cash withdrawals at its ATMs within the monthly free transaction quota. In effect, taking out cash using UPI will no longer be “extra” or outside the limit.

 

Once the free limit is exhausted, customers will pay Rs 23 per withdrawal plus taxes

 

The rule aligns UPI withdrawals with regular ATM transactions, closing a cost gap many users relied on

What it means: If you frequently use cardless cash withdrawals, you may hit your free limit faster and start paying fees earlier in the month.

 

Daily withdrawal caps cut on select cards

 

Punjab National Bank has reduced daily ATM withdrawal limits on several debit card variants.

 

For many cards, the limit drops from Rs 100,000 to Rs 50,000 per day

For higher-tier cards, limits fall from Rs 150,000  to Rs 75,000 per day

What it means: Large cash withdrawals may need to be split across days or shifted to branch transactions or digital payments. 

 

Fewer free transactions outside home bank ATMs

 

Bandhan Bank is revising free ATM usage, especially on other banks’ machines.

 

At Bandhan ATMs: Up to five free financial transactions per month; non-financial usage remains unlimited

At other bank ATMs: Three free transactions in metro cities and 5 in non-metros (financial + non-financial combined)

Post-limit charges: Rs 23 per financial and Rs 10 per non-financial transaction

Rs 25 penalty for failed transactions due to insufficient balance

Metro cities include New Delhi, Mumbai, Kolkata, Chennai, Bengaluru and Hyderabad.

 

What it means: Checking balance or mini statements at another bank’s ATM now eats into your free quota, increasing the chance of fees.

 

How to minimise charges

 

Track your monthly count: Include UPI cash withdrawals in your tally

Prefer your bank’s ATM: Especially for balance checks and mini statements

Plan large withdrawals: Given lower daily caps, avoid last-minute cash needs

Shift to digital payments: Reduce reliance on cash where possible