As the new financial year kicks off on April 1, 2026, several major Indian banks are set to overhaul their ATM transaction rules, directly impacting how customers withdraw cash.
From reduced daily limits to revised fee structures, banking giants like HDFC Bank, Punjab National Bank (PNB), and Bandhan Bank have announced significant updates.
HDFC Bank: UPI-ATM Linked To Free Limits
In a notable move, HDFC Bank will now count UPI-based cardless cash withdrawals towards a customer’s monthly free ATM transaction limit. Once the free limit — three transactions in metro cities and five in non-metro areas — is exhausted, customers will be charged ₹23 plus applicable taxes for every subsequent withdrawal.
PNB: Drastic Cut In Daily Withdrawal Limits
Punjab National Bank is tightening the purse strings on several of its debit cards. For specific cards where the daily withdrawal limit was previously ₹1 lakh, the cap has been slashed to ₹50,000. Premium cardholders are not exempt either; their daily limit has been halved from ₹1.5 lakh to ₹75,000. These measures appear aimed at enhancing security and promoting digital transactions.
Bandhan Bank: Revised Transaction Caps
Bandhan Bank has also recalibrated its fee structure. Customers will now be entitled to only five free financial transactions per month at Bandhan Bank ATMs. For transactions at other banks’ ATMs, the free limit has been reduced to just three. Surpassing these thresholds will incur a flat fee of ₹23 per transaction.
With these changes just days away, financial experts advise customers to track their monthly withdrawals closely to avoid unexpected charges. As HDFC Bank noted in its updated terms, these revisions are part of a broader effort to streamline banking services and align with current digital consumption patterns. Check with your respective branch for card-specific details before the April 1 deadline.