New ATM rules India: With the new financial year nearing, banks across India have buckled up to introduce a fresh set of ATM regulations from April 1, 2026, potentially reshaping how millions of people access their cash. The revised framework focuses on transaction limits, charges and the growing integration of digital payment systems.

UPI withdrawals to count towards free limits, announces HDFC

Private lender HDFC bank has said that UPI-based ATM withdrawals will be included within the monthly free transaction quota, starting April 1. Until now, the UPI withdrawals were considered separately. However, as per the revised rules, customers exceeding their monthly free limit will be levied a charge of Rs 23 per transaction, excluding taxes. Notably, HDFC account holders are allowed five free transactions at HDFC ATMs, along with three in metro cities and five in non-metro ones at other bank’s ATMs. 

PNB introduces changes to daily withdrawal limits

Meanwhile, public sector lender Punjab National Bank has also updated its daily cash withdrawal limits for select debit cards. Under the new structure, customers will be able to withdraw between Rs 50,000-Rs 75,000 per day, depending on the card category. However, some cards that previously permitted withdrawals of up to Rs 1 lakh will now have reduced ceilings. The bank said that the move’s goal is to standardise usage patterns and strengthen risk management practices. 

New ATM rules India: Jio Payments Bank shifts towards digital banking

On the other hand, Jio Payments Bank has launched a QR code-based cash withdrawal facility. This will enable the customers to access cash by scanning a UPI QR code and authorising the transaction through a UPI app at designated banking correspondents. 

Tighter controls on offer

These changes mark a broader shift within the banking sector towards digital-first solutions, while simultaneously tightening controls on cash usage. Customers of the aforementioned banks have been advised to review updated limits carefully and monitor their transactions to avoid unexpected charges.

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