Leading lenders like HDFC Bank, Punjab National Bank, and Bandhan Bank have announced key changes in free transaction limits, cash withdrawal caps, and charges.

Here's a complete breakdown of what's changing and how it will affect you.

HDFC Bank: UPI Withdrawals Now Count as ATM Transactions

HDFC Bank has updated how ATM transactions are calculated.

What's Changed?

• Cardless cash withdrawals via UPI will now be counted within your monthly free ATM transaction limit
• After exceeding the free limit, a charge of ₹23 per transaction (plus taxes) will apply

Free Transaction Limits:

• Own bank ATM: 5 free transactions per month
• Other bank ATMs:
  • Metro cities: 3 transactions
  • Non-metro cities: 5 transactions

Impact:

Customers who frequently use UPI-based ATM withdrawals will now reach their free limit faster.

Punjab National Bank: Lower Daily Cash Withdrawal Limits

Punjab National Bank has reduced daily withdrawal limits on select debit cards.

New Limits:

• Platinum, Gold, Business cards:
  • Reduced from ₹1 lakh to ₹50,000 per day
• Select and Signature cards:
  • Reduced from ₹1.5 lakh to ₹75,000 per day

Impact:

Customers who withdraw large amounts of cash regularly will need to plan transactions more carefully.

Bandhan Bank: Revised Free Transaction Policy

Bandhan Bank has also updated its ATM usage rules.

Free Transactions:

• Own bank ATM:
  • 5 free financial transactions per month
  • Non-financial transactions (like balance check) remain unlimited
• Other bank ATMs:
  • Metro cities: 3 free transactions
  • Non-metro cities: 5 free transactions

Charges After Limit:

• Financial transactions: ₹23 per transaction
• Non-financial transactions: ₹10 per transaction

What Should Customers Keep in Mind?

With these new rules in place, customers need to be more mindful of their ATM usage:

• Track your monthly free transaction limit
• Avoid unnecessary withdrawals
• Prefer digital payments like UPI or net banking
• Withdraw larger amounts in fewer transactions

Final Takeaway

The updated ATM rules from April 1, 2026, signal a shift towards controlled cash usage and increased reliance on digital payments. While the changes may seem minor, they can lead to additional charges if not managed carefully.

Understanding these updates will help you avoid extra fees and make smarter financial decisions in the new financial year.