ATM Rules Changing from April 1st: Cash Withdrawals to Become More Expensive; These 3 Banks Issue New Directives

ATM Rules: With the commencement of the new financial year (FY 2026-27), significant changes are poised to sweep across the banking sector. HDFC Bank, Punjab National Bank (PNB), and Bandhan Bank have revised their regulations regarding ATM transactions and debit card limits. If you are a customer of these banks, it is crucial to familiarize yourself with these new rules, which come into force on April 1, 2026.

HDFC Bank: UPI-based Cash Withdrawals Now Also Subject to 'Limits'

HDFC Bank has clarified that cash withdrawals made at ATMs via UPI—without the use of a physical card (known as 'Cardless Withdrawal')—will now also be counted towards the total number of free transactions allowed.

• Free Limit: Customers are entitled to 5 free transactions at their own bank's ATMs; for ATMs belonging to other banks, the limit is set at 3 free transactions in metro cities and 5 free transactions in non-metro cities.
• Additional Charges: Once the free limit is exhausted, a fee of ₹23 (plus applicable taxes) will be levied for every subsequent transaction.
• New Time-based Rule: Any transaction conducted after 7:30 PM will be counted towards the transaction quota of the following day. Furthermore, any transaction performed after 7:30 PM on the last day of the month will be counted against the quota for the subsequent month.

Punjab National Bank (PNB): Withdrawal Limits Set to Decrease

PNB has halved the daily cash withdrawal limit for select categories of its debit cards.

New Limit: For cards such as RuPay Platinum, Visa Gold, and MasterCard Platinum, the daily withdrawal limit has been reduced from ₹1 lakh to ₹50,000. Affected Cards: This rule will apply to variants such as RuPay NCMC Platinum, RuPay Women Power, PNB Palash, and Mastercard Platinum Rise.

Bandhan Bank: Penalty for Failed Transactions

Bandhan Bank has also tightened its regulations.

• Limits: 5 free financial transactions at the bank's own ATMs (non-financial transactions are unlimited). At other banks' ATMs, 3 free transactions in metro cities and 5 free transactions in other cities (covering both financial and non-financial transactions).
• Charges: Beyond the free limit, a fee of ₹23 will be levied for financial transactions, and ₹10 for non-financial transactions.
• Penalty: If a transaction fails due to insufficient balance in the account, a penalty of ₹25 will be charged.

Objective: To Promote Digital Payments

The aim behind these measures taken by banks is to encourage customers to opt for digital channels—such as UPI and Net Banking—instead of cash withdrawals. This will reduce the burden of cash management on banks and enhance security for large-value transactions.