Banks in India are set to roll out a series of changes to ATM usage from April 1, marking the start of the new financial year. The updates, announced by leading lenders and payment banks, are expected to affect withdrawal limits, transaction charges and how customers access cash.
Private sector lender HDFC Bank has confirmed that UPI-based cash withdrawals made at ATMs will now be included in the monthly free transaction limit. Previously treated as a separate category, these withdrawals will now count towards the total number of free transactions allowed.
Customers who exceed their monthly limit will be charged Rs 23 per transaction, excluding applicable taxes. At present, most customers are entitled to five free withdrawals per month at HDFC Bank ATMs, along with three free transactions in metro cities and five in non-metro areas at other banks' ATMs.
Meanwhile, public sector lender Punjab National Bank has revised its daily cash withdrawal limits for select debit cards. Under the new rules, customers will be able to withdraw between Rs 50,000 and Rs 75,000 per day depending on their card type.
Some cards that previously allowed withdrawals of up to Rs 1,00,000 will now have reduced limits. The move is aimed at standardising usage and improving risk management.
In addition, Jio Payments Bank has introduced a new QR code-based cash withdrawal facility. This allows customers to withdraw money by scanning a UPI QR code and authorising the transaction through a UPI application at designated banking correspondents. These changes highlight a broader shift towards digital banking while tightening controls on cash usage. Customers are advised to review their bank-specific limits and track transactions carefully to avoid additional charges.
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