ATM withdrawals change from April 1: Know charges and limits
What's the story
Several major banks, including HDFC Bank and Punjab National Bank (PNB), have announced changes to their ATM-related rules effective April 1. The revisions will impact how customers use cash withdrawal services across channels. The changes include transaction counting, applicable charges, and daily withdrawal limits on select debit cards. Let's take a closer look at the modifications introduced by HDFC Bank and PNB.
Policy change
HDFC Bank's new UPI withdrawal rule
HDFC Bank has announced that it will start counting UPI-based cash withdrawals at ATMs as part of the monthly free transaction limit. Previously, these transactions were counted separately. Now, customers using cardless cash withdrawal via UPI will have these transactions included within their allowed free ATM usage. After exceeding this limit, a charge of ₹23 per transaction (plus applicable taxes) will be levied by the bank.
Withdrawal limits
Five free transactions at HDFC Bank's ATMs
HDFC Bank's existing structure allows five free withdrawals per month at its own ATMs. For transactions at other bank ATMs, the limit is three free withdrawals in metro cities and five in non-metro locations. The bank said this move is aimed at standardizing fee structures across different withdrawal channels and improving transparency in how charges are applied.
Digital shift
Understanding UPI-enabled ATM withdrawals
UPI-enabled ATM withdrawals allow users to withdraw cash without a debit card by scanning a QR code at compatible machines and authorizing the transaction through a UPI application. The facility has been adopted by banks as part of broader efforts to integrate digital payments with cash access. This move is expected to make transactions more convenient for customers across India.
Limit reduction
PNB reduces daily withdrawal limits for select debit cards
Separately, Punjab National Bank has also announced a revision in ATM withdrawal limits for select debit cards, effective April 1. The bank has said that daily withdrawal limits will be reduced for certain card categories, but specific thresholds are yet to be detailed. Customers are advised to check if their debit cards are affected by this change and plan their withdrawals accordingly.