Major Banks Revise ATM Rules: Free Transactions, Withdrawal Limits to Change from April 1

Several prominent public and private sector lenders have revised their ATM usage policies, with the updated rules set to take effect from April 1, 2026. The changes mainly focus on the number of complimentary ATM transactions allowed each month and the daily cash withdrawal ceilings applicable to different card categories. Customers may notice differences in how transactions are counted and the charges levied once free limits are exceeded. These updates aim to streamline banking operations and encourage digital transactions, while also ensuring customers remain aware of usage limits and any additional fees that could be incurred during ATM usage.

HDFC Bank has introduced an important change in how ATM transactions will be calculated starting April 1, 2026. Under the revised system, cash withdrawals made through UPI at ATMs will now be treated the same as standard ATM withdrawals when computing the monthly free transaction quota. Once customers cross the free transaction threshold, they will be charged Rs 23 per transaction along with applicable taxes. At present, savings and salary account holders are entitled to five free withdrawals at HDFC Bank ATMs. For transactions at other bank ATMs, customers can avail three free withdrawals in metro cities and five in non-metro locations.

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UPI-enabled cardless cash withdrawals at ATMs are carried out through the Interoperable Cardless Cash Withdrawal (ICCW) system. This facility enables users to withdraw money without a physical debit card by selecting the UPI withdrawal option on the ATM screen. Customers must then scan a QR code displayed on the machine using their mobile banking or UPI app and authorise the transaction on their smartphone. This method enhances convenience and security, reducing dependency on physical cards while promoting digital payment systems across the banking ecosystem in both urban and semi-urban areas.

Punjab National Bank has also updated its ATM-related policies by reducing the daily cash withdrawal limits for certain debit card categories. The revised limits, which will be implemented from the beginning of the new financial year, represent a significant cut of up to 50 percent. For example, customers holding Platinum, Gold, and Business debit cards will now be able to withdraw a maximum of Rs 50,000 per day, compared to the earlier limit of Rs 1 lakh. Similarly, Select and Signature debit card holders will see their daily withdrawal limit reduced from Rs 1.5 lakh to Rs 75,000.

Bandhan Bank has announced modifications to its ATM transaction policies as well. From April 1, customers using debit cards linked to Bandhan Bank accounts will be allowed five free financial transactions per month at the bank’s own ATMs, while non-financial transactions will remain unlimited. When using ATMs of other banks, customers will be entitled to three free transactions per month in metro cities and five in non-metro areas, covering both financial and non-financial activities. Metro cities under this classification include Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, and New Delhi, while all other locations are categorised as non-metro cities.