Outlook Business Desk
From April 1, 2026, major banks are updating ATM regulations. These include revised monthly free transaction counts, daily cash withdrawal limits and charges for transactions exceeding the free limit. UPI and card-based withdrawals are affected differently.
Starting April 1, 2026, HDFC Bank will count UPI-based ATM cash withdrawals along with card transactions when determining the monthly free transaction limit. Previously excluded, UPI withdrawals will now impact customers’ free transaction quota at ATMs.
Under HDFC’s new rules, customers will get 5 free transactions at HDFC ATMs, 3 at other-bank ATMs in metro cities and 5 in non-metro areas. Any transaction exceeding these limits will incur ₹23 plus taxes for each withdrawal.
HDFC Bank will consider ATM transactions made after 7:30 PM as part of the next day. On the last day of the month, transactions done after 7:30 PM will be recorded in the following month, impacting the monthly free transaction count.
On the other hand, Punjab National Bank (PNB) has reduced the daily ATM cash withdrawal limit from ₹1 lakh to ₹50,000 for select debit cards, including RuPay NCMC Platinum, RuPay Women Power Platinum, PNB Palaash, MasterCard Platinum and VISA Gold debit cards.
Bandhan Bank permits five free financial ATM transactions per month at its own ATMs, while non-financial transactions remain unlimited. At other banks’ ATMs, free transactions are limited to three per month in metro cities and five per month in non-metro locations.
Exceeding Bandhan Bank’s free ATM limit will incur a charge of ₹23 for each extra financial transaction and ₹10 for non-financial transactions. Failed transactions due to insufficient funds will attract a ₹25 penalty, promoting careful account management.
Bandhan Bank classifies Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi as metro cities. All other locations are considered non-metro. Free ATM transaction limits and charges for exceeding them differ based on whether the ATM is in a metro or non-metro city.
Banks are encouraging customers to use digital payments such as UPI and net banking for higher-value transactions. These methods bypass ATM charges and withdrawal limits, making them safer and more economical for frequent or large-value transfers.