From April 1, 2026, several Indian banks are introducing significant updates to ATM withdrawal rules — affecting daily cash limits, how free transactions are counted, and potential charges for UPI‑based cash withdrawals. These changes coincide with the start of the new financial year and are part of broader banking policy adjustments.

💡 1. Who Is Affected?

These rule changes apply to customers of several major banks, including:

• HDFC Bank
• Punjab National bank (PNB)
• Bandhan Bank

Other banks may also adopt similar changes as the new financial year begins.

💳 2. Revised ATM Withdrawal Limits

📉 Lower Daily Cash Withdrawal Limits (PNB)

PNB has announced reductions in daily cash withdrawal limits on many of its debit card types:

• Some cards’ limits have been cut from ₹1 lakh to ₹50,000 per day
• On select premium cards, limits have been lowered from ₹1.5 lakh to ₹75,000 per day

Customers must check the specific limits applicable to their cards starting april 1.

👉 This reduction may affect customers who frequently withdraw large amounts of cash in a single day.

💸 3. UPI Cash Withdrawals Now Count Toward Free Limits

One of the most noticeable changes from april 1, 2026 is:

• UPI‑based cash withdrawals at ATMs will now be counted toward your monthly free ATM transaction limit.

Previously, withdrawing cash via UPI (for example, by scanning a QR code at an ATM) was separate from debit card cash withdrawals and didn’t affect your free balance. Under the new rules, it reduces the number of free transactions you have left — and additional transactions beyond the free limit will attract fees.

💡 Free Transaction Example:
– At your own bank’s ATM: typically 5 free withdrawals per month
– After the free limit is reached: a fee of around ₹23 per transaction (plus applicable taxes) may be charged.

🧾 4. Charges and Fees You Should Know

With these rule changes:

• Free transaction count now includes UPI cash withdrawals
• Additional transactions beyond free limit may be charged a fee (e.g., ₹23 + GST per transaction at many banks)
• Charges apply both for cash and certain wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital withdrawal activities once free limits are exhausted

This change could make ATM withdrawals more expensive for customers who frequently use UPI cash pulls or exceed their monthly free counts.

📊 5. Why Are Banks Making These Changes?

Banks are adjusting ATM rules for a few reasons:

• Cost of ATM operations has increased, including maintenance and interchange fees.
• Encouraging digital transactions and reducing dependency on cash.
• Aligning ATM usage policies with evolving payment habits, including UPI and card‑based systems.

📌 6. What customers Should Do

Here’s how you can prepare before april 1:

✅ Check your bank’s official notification for precise limits and fee schedules.
✅ Know your free transaction entitlements per month, including UPI withdrawals.
✅ Consider digital alternatives (like online transfers) for frequent transactions to save on charges.
✅ If you use high cash amounts regularly, talk to your bank about available options.

🧠 Quick Summary

Change

Impact

UPI ATM cash withdrawals now count toward free limits

Reduces free transactions available

Daily withdrawal limits lowered on some cards at PNB

May restrict big cash withdrawals

Extra charges apply after free limits

Costs could increase

Applies from april 1, 2026

Start of new financial year

 

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