Banks across India are set to introduce new ATM rules from April 1, coinciding with the start of the new financial year. The changes, announced by major lenders, will affect withdrawal limits, transaction charges and how customers access cash through ATMs.

Changes in transaction limits and charges

HDFC Bank has confirmed that UPI-based cash withdrawals at ATMs will now be counted within the monthly free transaction limit. Earlier treated separately, these transactions will now be included in the total number of free withdrawals allowed.

Customers who exceed the monthly limit will have to pay Rs 23 per transaction, excluding applicable taxes. Currently, most customers get five free transactions at HDFC Bank ATMs every month. Additionally, they are allowed three free transactions in metro cities and five in non-metro areas at other banks' ATMs.

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Punjab National Bank has also revised its daily withdrawal limits for select debit cards. Under the new rules, customers can withdraw between Rs 50,000 and Rs 75,000 per day, depending on the card type. Some cards that earlier allowed withdrawals of up to Rs 1,00,000 will now have reduced limits, aimed at better risk management and standardisation.

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Shift towards digital cash access

Jio Payments Bank has introduced a QR code-based cash withdrawal system. This feature allows users to withdraw money by scanning a UPI QR code and authorising the transaction through a UPI app at designated banking correspondents.

These updates reflect a broader shift towards digital banking while also tightening controls on cash usage. Customers are advised to check their bank-specific limits and keep track of transactions to avoid extra charges.