HDFC Bank’s ATM rules will change from April 1st

HDFC Bank Rules: Big news for HDFC Bank account holders. HDFC Bank has decided to make a significant change for its customers. Effective April 1, 2026, ATM cash withdrawals using UPI will be included in the monthly free ATM transaction limit. This means that while UPI withdrawals were previously free, they will now be counted in the same way as debit card withdrawals. The benefit or disadvantage to customers of this is that if the monthly free limit is exceeded, a fee will be charged.

Savings and salary account holders are entitled to five free transactions per month at HDFC Bank ATMs. These include cash withdrawals and some non-financial transactions. If the number exceeds five, a charge of Rs 23 plus applicable taxes will be levied for each additional transaction. This charge already applies to other bank ATMs, where three free transactions are available in metro cities and five in non-metro cities. Now, UPI cash withdrawals will also be covered under this rule.

Which accounts will not be affected by the change?

Customers with certain current account types, such as Biz Lite Plus, Biz Pro Plus, Biz Ultra Plus, Biz Elite Plus, Flexi, Plus, Active, Ascent, Max Advantage, Max, Professional, Ecom, Apex, Ultima, Flexi, Merchant Advantage Plus, Merchant Advantage, Supreme, StartUp, SmartUp Max, SmartUp Growth, Giga Current Account, enjoy unlimited free transactions at HDFC ATMs. These accounts will not be affected by this change.

This change comes as the bank wants to integrate UPI cash withdrawals with standard ATM withdrawal rules. Previously, UPI withdrawals were not counted separately, but will now be included starting April 1, 2026. Customers can withdraw cash cardlessly using UPI apps like PayZapp, BHIM, PhonePe, Paytm, and GPay at HDFC ATMs or other bank ATMs that support this feature. Withdrawals are easily accomplished by scanning a QR code.

The impact on customers will be that those who withdraw large amounts of cash monthly, especially through UPI, will now need to exercise caution. If the limit is exceeded, they will have to pay Rs 23 plus tax each time. The bank has stated that there are no charges for debit card payments at domestic merchant locations or websites, except for select merchants such as 1.8% at IRCTC or Rs 30 flat plus 1.8% at railway stations.

International ATMs have separate charges, such as Rs 25 plus tax for balance inquiries and Rs 125 plus tax for cash withdrawals, along with cross-currency markups. The bank has informed customers that this rule will be effective May 1, 2025. The charge at other bank ATMs has been increased from Rs 21 to Rs 23, and now includes UPI.