ATM Rules Revamp: Daily Limits Cut, UPI Withdrawals Count From April 1

Last Updated:March 22, 2026, 10:56 IST

From April 1, HDFC Bank, PNB and Jio Payments Bank change ATM and UPI cash rules, cutting limits, adding charges and pushing UPI based cardless withdrawals.

New ATM Rules From April 1: Banks Tighten Limits, UPI Withdrawals Included

New ATM rules are set to become effective from April 01, marking as an attempt to standardize the process of withdrawing cash from the machines. Several banks have announced major changes in the process that will direct impact customers. Some of the big changes are reducing the limit of withdrawal available per day for customers and combining the UPI-based cash withdrawals into the monthly free transaction limit.

HDFC Bank To Charge For UPI-Based Cash Withdrawals After Free Limit

HDFC Bank has informed customers that UPI-based cash withdrawals at ATMs will now be included in the monthly free transaction limit starting April 1, 2026. Any withdrawals beyond this limit will attract the applicable standard charges.

Currently, HDFC Bank savings and salary accounts offer five free withdrawals per month at HDFC Bank ATMs. For non-HDFC Bank ATMs, the free withdrawal limit is three transactions per month in top-six cities and five transactions in other locations.

PNB Trims Withdrawal Limit

In a separate move, Punjab National Bank has revised ATM withdrawal limits for certain debit cards, with the changes set to take effect from April 1. The bank noted that daily withdrawal caps will be lowered for select card categories, though exact limits have not been disclosed yet.

Customers are advised to verify whether their cards fall under the revised norms and plan their cash usage accordingly. Lenders have also urged customers to rely more on digital modes such as UPI and net banking for larger transactions.

Jio Payments Bank To Allow UPI-Based Cardless Cash Withdrawal Service

Jio Payments Bank Limited (JPBL), a wholly-owned subsidiary of Jio Financial Services Limited, has launched a UPI-based cash withdrawal facility through its Business Correspondent (BC) network.

The service allows customers to withdraw cash by scanning a UPI QR code and authorising the transaction via their UPI-enabled app, eliminating the need for debit cards or traditional ATMs.

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