ATM Card New Rules 2026: Your Bank Just Changed How You Use Your Card

HDFC, PNB, and Bandhan Bank have quietly updated their ATM rules from April 1. If you use cash or UPI at ATMs, these changes could cost you more than you think.

These changes reflect a broader tightening of ATM usage norms across banks.

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Key points generated by AI, verified by newsroom

• HDFC Bank counts UPI ATM withdrawals under free limits.
• PNB reduces daily ATM cash withdrawal limits for debit cards.
• Bandhan Bank revises free ATM transaction limits at other banks.
• Customers face charges for exceeding ATM transaction limits.

Starting April 1, 2026, several banks in India have updated their ATM transaction rules. HDFC Bank, Punjab National Bank (PNB), and Bandhan Bank are among the lenders that have revised withdrawal limits, free transaction caps, and charges. 

The changes are set to directly impact how customers use ATMs on a daily basis, and those who frequently withdraw cash or rely on UPI-based ATM transactions may want to take a closer look at the revised rules before their next visit.

HDFC Bank Counts UPI ATM Withdrawals Under Free Transaction Limit

HDFC Bank has made a notable change to how UPI-based cash withdrawals are treated. From April 1, any cash withdrawal made at an ATM using UPI will be counted as part of the monthly free transaction limit, the same way a regular card-based withdrawal is counted.

Customers typically get five free ATM transactions per month. Once that limit is crossed, a charge of Rs 23 per transaction will apply, along with applicable taxes. This means customers who use UPI at ATMs frequently could hit the free limit faster than before.

PNB Cuts Daily ATM Withdrawal Limits On Select Debit Cards

Punjab National Bank has reduced the daily cash withdrawal limits for several of its debit card variants. Cards that previously allowed withdrawals of up to Rs 1,00,000 per day will now have a revised cap of Rs 50,000. For premium cards, the limit has been brought down from Rs 1,50,000 to Rs 75,000.

These changes apply across multiple RuPay, Visa, and Mastercard debit card variants issued by the bank. Customers who regularly withdraw larger amounts in a single day will need to plan accordingly.

How Bandhan Bank Has Changed Its ATM Usage Policy

Bandhan Bank has revised its free transaction limits, particularly for transactions carried out at other bank ATMs. At Bandhan Bank's own ATMs, customers can carry out up to five free financial transactions per month, while non-financial transactions remain unlimited.

At other bank ATMs, the free limit is three transactions per month in metro cities and five in non-metro cities. This combined limit covers both financial and non-financial transactions.

Once the free limit is exhausted, Bandhan Bank will charge Rs 23 per financial transaction and Rs 10 per non-financial transaction. Additionally, if a transaction fails due to insufficient balance, a penalty of Rs 25 will be levied.

Taken together, these changes reflect a broader tightening of ATM usage norms across banks. With UPI withdrawals now counted toward free limits, lower daily withdrawal caps at PNB, and stricter policies at Bandhan Bank, customers will need to be more mindful of how and when they use ATMs to avoid paying additional charges.

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