New ATM Rules in India from April 2026

From April 1, 2026, several banks in India have introduced updated ATM regulations that directly affect how customers withdraw cash and manage transactions. These changes mainly focus on UPI-based cash withdrawals, revised daily withdrawal limits, and reduced free ATM usage at other banks.

UPI Cash Withdrawals Now Count as ATM Transactions

One of the major updates is related to UPI-based cash withdrawals. Earlier, cardless withdrawals using UPI were treated separately from regular ATM transactions. Under the new rules, banks will now count these withdrawals as part of ATM usage.

For example, HDFC Bank has announced that UPI cash withdrawals will now be included in the monthly free ATM transaction limit. This means customers who frequently use UPI for withdrawing cash may reach their free transaction limit more quickly. Once the limit is exceeded, a charge of Rs.23 per transaction, along with applicable taxes, will be applied. This change removes the earlier benefit where UPI withdrawals were mostly free and widely preferred.

Daily Withdrawal Limits Reduced on Debit Cards

Another important change has been introduced by Punjab National Bank. The bank has reduced daily cash withdrawal limits for various debit card categories.

The updated limits are as follows: standard debit cards now allow withdrawals up to Rs.50,000 per day instead of Rs.1,00,000, while premium debit cards have been reduced from Rs.1,50,000 to Rs.75,000 per day. This means customers who need larger amounts of cash will now have to plan withdrawals over multiple days.

Reduced Free Transactions at Other Bank ATMs

Bandhan Bank has also revised its ATM usage policy, especially for transactions carried out at ATMs of other banks.

Customers can still enjoy up to five free transactions per month at Bandhan Bank ATMs, while non-financial transactions remain unlimited. However, at ATMs of other banks, the free transaction limit has been reduced. In metro cities, only three free transactions are allowed per month, while in non-metro cities, up to five free transactions are permitted.

After exceeding these limits, customers will be charged Rs.23 per financial transaction and Rs.10 per non-financial transaction. Additionally, a penalty of Rs.25 will be imposed for failed transactions due to insufficient balance.

Impact of New ATM Rules on Customers

These updated rules may not significantly affect occasional users, but frequent ATM users are likely to notice the changes. Customers who regularly rely on UPI for cardless withdrawals, use ATMs of other banks, or withdraw large amounts of cash daily may end up paying additional charges.

Overall, these changes encourage customers to plan their transactions carefully and be more aware of their monthly limits to avoid extra fees.

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