New ATM Rules from April 1 to Impact Bank Customers Across India
Revised ATM transaction limits and charges by major banks will take effect from April 1 pushing customers to rethink cash withdrawals and rely more on digital payment options
Bank customers across India are set to face changes in how they use ATMs, as new rules come into effect from April 1. Leading lenders including HDFC Bank, Punjab National Bank, and Bandhan Bank have updated their ATM policies, introducing revised limits and additional charges for transactions beyond free usage.
The changes are expected to affect frequent ATM users the most. Customers who rely heavily on cash withdrawals or balance checks may now need to be more cautious, as exceeding the free transaction limit will attract extra fees. Banks are encouraging users to shift toward digital payment methods to avoid these added costs.
Under the revised structure, HDFC Bank has made a notable change by including UPI based cardless cash withdrawals within the regular ATM transaction count. Earlier treated separately, these transactions will now be part of the monthly free limit. Savings and salary account holders can continue to enjoy up to five free transactions at HDFC Bank ATMs. However, when using other bank ATMs, customers are allowed three free transactions in metro cities and five in non metro areas. Beyond this, each transaction will incur a fee along with applicable taxes.
Meanwhile, Punjab National Bank has revised daily withdrawal limits for several debit card categories. Cards that previously allowed withdrawals up to one lakh rupees per day have now been reduced to fifty thousand rupees. Higher tier cards that once permitted withdrawals up to one and a half lakh rupees now have a lower ceiling of seventy five thousand rupees. This move effectively cuts withdrawal limits by nearly half for some customers.
In the case of Bandhan Bank, the focus is on adjusting the number of free transactions. Customers can continue to make five free financial transactions per month at the bank’s own ATMs, while non financial services such as balance checks remain unlimited. At other bank ATMs, the free transaction limit stands at three in metro cities and five in non metro locations. Charges will apply once these limits are exceeded.
The updated rules align with guidelines from the Reserve Bank of India, which regulates ATM usage policies across the country. As per the framework, customers exceeding their free transaction quota will be charged a fixed fee per transaction along with taxes.
With these changes in place, banking habits are likely to shift. Customers are being advised to monitor their transaction counts closely and explore alternatives such as UPI payments, mobile banking apps, and online transfers. Reducing dependency on ATMs could help avoid unnecessary charges under the new system.
As the revised rules come into force, staying informed about individual bank policies and limits will be essential for managing everyday banking expenses efficiently.
