New ATM rules April 1: Cash withdrawal limits and UPI fees for HDFC, PNB & other bank customers

Mumbai: Starting April 1, 2026, a series of major changes to ATM withdrawal rules and cash transaction limits will take effect across India. Several leading lenders, including HDFC Bank and Punjab National Bank (PNB), have announced a significant tightening of their cash policies.

The move aims to standardise cash handling costs and push customers toward a "digital-first" economy. Here is a breakdown of the new rules that will directly impact your wallet from next month.

1. HDFC Bank:

If you use the UPI-based cardless cash withdrawal (ICCW) feature at HDFC Bank ATMs, take note. Previously, many users enjoyed these as a separate convenience, but from April 1, they will be counted within your monthly free transaction limit.

Savings and Salary account holders get 5 free transactions at HDFC ATMs and 3 to 5 at other bank ATMs (depending on metro/non-metro locations).

Once you hit this limit, every UPI-based withdrawal will attract a charge of ₹23 plus taxes, noted Goodreturns.

2. PNB Bank:

Punjab National Bank (PNB) is drastically reducing the daily cash withdrawal capacity for several popular debit card variants to curb fraud risks and manage liquidity.

For many cards, the limit drops from Rs 100,000 to Rs 50,000 per day and for other higher-tier cards, limits fall from Rs 150,000 to Rs 75,000 per day.

3. Jio Payments Bank:

In a move that could revolutionise rural banking, Jio Payments Bank (JPBL) has launched a UPI-based QR cash withdrawal service through its Business Correspondent (BC) network.

How it works: Instead of searching for an ATM, customers can walk into a Jio-partnered retail outlet, scan a UPI QR code, and receive cash from the merchant.

4. Standardized Charges: The ₹23 Factor

Following RBI’s updated guidance for 2026, most banks, including Bandhan Bank, are moving toward a uniform fee of ₹23 per transaction once free limits are exhausted.