ATM Rules Changed: Several prominent banks have updated their ATM usage policies,which will take effect on April 1,2026,coinciding with the start of the new financial year. HDFC Bank,Punjab National Bank (PNB),and Bandhan Bank have all revised their guidelines concerning free transaction limits,fees,and cash withdrawals. This change will have a direct effect on bank customers.
HDFC Bank
HDFC Bank has implemented a significant modification. Cardless cash withdrawals from ATMs via UPI will now count towards the free transaction limit. This means that if you withdraw cash using UPI,it will be treated as a standard ATM transaction. Once the free limit is reached,a fee of Rs 23 (plus taxes) will apply to each transaction. Currently,HDFC customers are allowed 5 free transactions at their own ATMs,while they can make 3 free transactions at other banks’ ATMs in metro areas and 5 in non-metro areas. Additionally, HDFC Bank has implemented a time limit that states ATM transactions made after 7:30 PM will be counted as transactions for the next day. On the last day of the month,such transactions will be included in the next month’s quota.
PNB reduces cash withdrawal limit
Punjab National Bank has lowered the daily cash withdrawal limit for certain debit cards. However,this limit may differ depending on the card type,so customers are advised to verify their card’s new limit.
Bandhan Bank: New policy on free transactions
Bandhan Bank has also modified its rules regarding ATM transactions. Customers will be entitled to five free financial transactions each month at their own ATMs,while non-financial transactions (like balance inquiries) will remain unlimited. At other banks’ ATMs,customers can make three free transactions in metro cities and five in non-metro areas. After these limits,a fee of ₹23 will be charged for financial transactions and ₹10 for non-financial transactions.
What to remember?
With these new regulations,customers should be mindful of their free transaction limits when using ATMs to avoid incurring additional charges. These changes may seem minor,but they could impact regular banking habits. Frequent withdrawals could result in higher charges. Customers may need to monitor usage more closely to avoid fees.
Banks are encouraging customers to move to digital options like UPI and net banking. Rising ATM usage fees and expanding transaction counts may lead many users to reduce ATM visits and rely more on digital means. India currently has over 250,000 ATMs,but usage trends are gradually shifting as digital payments grow.
