ATM Rule Changes April 1: UPI Withdrawals, Transaction Charges and Daily Limits Revised by Banks
HDFC Bank and PNB revise ATM transaction limits and charges effective from the new financial year.
Banks across India are set to introduce revised ATM usage rules from April 1, bringing changes to withdrawal limits, transaction charges, and digital cash access. The updates, announced by major lenders, signal a broader push towards digital banking while tightening controls around cash transactions at ATMs.
Private sector lender HDFC Bank has confirmed that UPI-based cash withdrawals at ATMs will now be counted within customers’ monthly free transaction limits. Earlier treated as a separate category, these withdrawals will now be included in the total number of free transactions allowed, potentially leading to quicker exhaustion of the free quota.
Under the revised structure, customers exceeding their monthly free transaction limit will be charged ₹23 per transaction, excluding applicable taxes. Currently, most account holders are entitled to five free transactions at their own bank’s ATMs, along with three free transactions in metro cities and five in non-metro areas at other banks’ ATMs.
Meanwhile, public sector lender Punjab National Bank has revised daily cash withdrawal limits for select debit cards. Customers will now be able to withdraw between ₹50,000 and ₹75,000 per day depending on the card type, with some cards that previously allowed withdrawals of up to ₹1 lakh seeing reduced limits as part of risk management measures.
In a parallel move, Jio Payments Bank has introduced a QR code-based cash withdrawal facility. This allows users to withdraw cash by scanning a UPI QR code and authorising the transaction through a UPI-enabled mobile application at designated banking correspondents, further expanding cardless cash access options.
The changes reflect a gradual shift in India’s banking ecosystem towards digital-first services while maintaining tighter oversight on physical cash usage. Customers are advised to review their bank-specific policies, monitor transaction counts closely, and adapt to the updated rules to avoid additional charges from the new financial year.
