Major updates to ATM usage are set to take effect from April 1, as leading banks revise rules around withdrawals, charges, and limits. These changes will directly impact how often customers can access cash and what they pay beyond free limits.
UPI ATM Withdrawals Now Count Toward Free Limits
In a significant move, HDFC Bank has announced that ATM withdrawals made via Unified Payments Interface (UPI) will now be included in the monthly free transaction quota.
Previously treated separately, these cardless withdrawals will now be counted alongside regular ATM transactions, creating a uniform system across all withdrawal methods.
Charges Beyond Free Transactions
Once customers exceed their monthly free transaction limit, a fee of ₹23 per additional transaction (plus applicable taxes) will be charged.
Current free limits at HDFC Bank:
5 transactions at HDFC Bank ATMs
3 transactions at other bank ATMs in metro cities
5 transactions at other bank ATMs in non-metro areas
Now, UPI-based withdrawals will also be included within these limits.
How UPI ATM Withdrawals Work
UPI-based ATM withdrawals offer a convenient, cardless experience:
Scan the QR code displayed on the ATM
Authorize the transaction via your UPI app
Collect cash instantly
This feature is becoming increasingly popular as banks integrate digital payments with traditional banking services.
PNB to Update Daily Withdrawal Limits
Punjab National Bank has also announced changes effective April 1. The bank will revise daily cash withdrawal limits for certain debit card categories.
While exact limits are yet to be disclosed, customers are encouraged to check with the bank to understand how their usage may be affected.
What You Should Do
With the new rules coming into effect, customers should:
Keep track of monthly ATM transactions
Remember that UPI withdrawals now count toward free limits
Check updated daily withdrawal limits for their debit cards
Consider using digital payment options like UPI or net banking for larger transactions
The Bigger Picture
These updates reflect a broader effort by banks to simplify ATM usage rules and improve transparency in charges. At the same time, they highlight a continued push toward digital payments while ensuring easy access to cash when needed.
