Banks Revise ATM Usage Rules and Limits Effective April 1, 2026

Several major banks have announced changes to ATM‑related rules that will come into effect on April 1, 2026. The updates affect how ATM transactions are counted, the charges applied after free limits are exhausted and the daily withdrawal thresholds for certain debit cards.

HDFC Bank has confirmed that UPI‑based cardless cash withdrawals will now be included within customers’ free monthly ATM transaction limits. Punjab National Bank (PNB) has issued a separate update indicating a reduction in ATM withdrawal limits for select card categories.

What is HDFC Bank Changing from April 1, 2026?

HDFC Bank will now count UPI-based ATM cash withdrawals in the same way as card-based transactions for calculating free monthly limits. Earlier, UPI-enabled withdrawals were excluded from the permitted transaction quota.

The bank stated that the change is intended to simplify its fee structure and ensure uniformity across withdrawal modes. Under the revised rules, customers will receive 5 free withdrawals at HDFC Bank ATMs, 3 at other-bank ATMs in metro cities and 5 in non-metro areas, with UPI withdrawals included and excess usage charged at ₹23 per transaction plus applicable taxes.

PNB’s Revision of Withdrawal Limits

Punjab National Bank has announced a reduction in daily withdrawal limits for certain debit card categories, effective April 1. While specific new thresholds have not been disclosed yet, the bank has advised customers to verify whether their cards fall under the revised structure.

The update is part of PNB’s periodic review of card‑related features and risk management practices. Customers who frequently withdraw large sums may need to adjust their withdrawal plans or use digital payment options for higher‑value transactions.

Why are Banks Implementing These Changes?

Banks regularly update ATM‑related terms to reflect operational costs, transaction patterns and evolving digital infrastructure. The inclusion of UPI‑based withdrawals within free transaction limits helps unify charging rules across withdrawal mechanisms.

Similarly, PNB’s adjustment of withdrawal limits is expected to align risk controls with customer usage behaviour. These changes also reflect a broader shift toward encouraging digital payments for higher‑value transactions, reducing dependence on physical cash withdrawals.

Read More: Indian PSU Banks Struggle to Retrieve ₹29 Lakh Crore from Major Defaulters.

Conclusion

The revised ATM‑related rules announced by HDFC Bank and PNB will take effect on April 1, 2026 and are expected to influence how customers manage their monthly withdrawals. HDFC Bank’s decision to count UPI‑based ATM withdrawals within the free transaction quota standardises charges across channels.

PNB’s upcoming reduction in daily ATM limits for select cards signals a recalibration of withdrawal controls. Customers are advised to review the updated terms and assess how the changes may affect their cash usage patterns.

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