ATM Rules Changing From April 1: HDFC, PNB and Bandhan Bank Update Withdrawal Limits and Charges

From April 1, 2026, several major banks in India are introducing new ATM rules that will directly impact how customers withdraw cash and manage transactions. Leading banks like HDFC Bank, Punjab National Bank, and Bandhan Bank have revised their policies, especially around free transaction limits, UPI withdrawals, and daily cash withdrawal caps.

These changes are important for customers who frequently use ATMs, as exceeding limits could now result in higher charges.

HDFC Bank: UPI Withdrawals Now Count in Free Limit

HDFC Bank has made a key change in how ATM transactions are counted. From April 1, even cardless cash withdrawals via UPI

will be included in your monthly free transaction limit.

What This Means:

• UPI-based ATM withdrawals will now be treated like regular withdrawals
• These transactions will count toward your monthly free limit
• Once the limit is crossed, a fee of ₹23 per transaction + taxes will apply

This change will particularly affect users who prefer cardless withdrawals, as they may hit their limit faster.

HDFC Bank Free ATM Limits

For savings and salary account holders:

• 5 free withdrawals per month at HDFC Bank ATMs
• At other bank ATMs:
  • 3 free transactions in metro cities

5 free transactions in non-metro cities

Now, UPI withdrawals will also be included in these limits, so careful tracking is essential.

Punjab National Bank Cuts Daily Withdrawal Limits

Punjab National Bank has reduced daily cash withdrawal limits on select debit cards, impacting customers who withdraw larger amounts regularly.

Revised Limits:

• Platinum, Gold, and Business debit cards:
  • Reduced from ₹1,00,000 to ₹50,000 per day

Select and Signature debit cards:

• Reduced from ₹1.5 lakh to ₹75,000 per day

These changes mean customers may need to plan withdrawals more carefully or use digital payment options for large transactions.

Bandhan Bank Updates Free Transaction Policy

Bandhan Bank has also updated its ATM usage rules.

New Free Transaction Limits:

• At Bandhan Bank ATMs:
  • 5 free financial transactions per month
  • No limit on non-financial transactions

At other bank ATMs:

• 3 free transactions in metro cities
• 5 free transactions in non-metro cities

After exceeding these limits, standard charges will apply, making it important for customers to monitor usage.

Why These Changes Matter

These updates reflect a broader shift toward:

• Encouraging digital payments
• Reducing excessive ATM usage
• Streamlining banking operations

However, for customers, it also means:

• More careful tracking of ATM usage
• Potential increase in transaction charges
• Adjustments in cash withdrawal habits

Tips to Avoid Extra Charges

To stay within limits and avoid unnecessary fees:

• Keep track of your monthly ATM transactions
• Use digital payment options like UPI for small payments
• Plan larger withdrawals in fewer transactions
• Check your bank’s updated policies regularly

Final Takeaway

With new ATM rules coming into effect from April 1, 2026, customers of HDFC Bank, Punjab National Bank, and Bandhan Bank must stay informed to avoid extra charges and inconvenience.

Understanding these changes and adapting your banking habits accordingly will help you manage your money more efficiently in the new financial year.