ATM Rules: Big news for ATM card holders. Several banks, such as HDFC Bank and Punjab National Bank (PNB), have revealed updates to their ATM regulations. These new guidelines will take effect on April 1st and will affect how customers can withdraw cash. The changes encompass transaction counting, applicable fees, and daily withdrawal limits for specific debit cards.
ATM withdrawals through UPI will now be included
HDFC Bank has stated that cash withdrawals from ATMs using UPI will now count towards the monthly limit of free transactions. Previously, these transactions were treated separately. Once the new regulations are implemented, cardless cash withdrawals via UPI will also contribute to the customer’s free ATM transaction allowance.
Charges will apply after exceeding the free transaction limit
If a customer surpasses the free transaction limit, the bank will impose a fee of Rs 23 for each extra transaction, in addition to applicable taxes. Currently, HDFC Bank ATMs permit five free withdrawals each month. ATMs from other banks allow three free withdrawals in metropolitan areas and five in non-metropolitan areas. The bank has indicated that these changes aim to standardize the fee structure for various cash withdrawal methods and enhance transparency regarding charges.
How do UPI ATM withdrawals function?
UPI-based ATM withdrawals do not require a debit card. Customers simply scan a QR code displayed on the ATM and authorize the transaction using their UPI app. They can then withdraw cash from the machine. Numerous banks are broadening this feature to merge digital payments with cash withdrawals.
PNB has also implemented changes
Punjab National Bank has announced modifications to ATM withdrawal limits for certain debit cards, effective April 1. The bank has indicated that daily cash withdrawal limits will be lowered for specific card categories. However, complete details regarding the new limits have yet to be disclosed. Banks have encouraged customers to verify if the new regulations apply to their debit cards and to utilize digital payment methods like UPI and net banking for larger transactions.