Starting April 1, 2026, banking customers across India will face a new set of rules regarding ATM cash withdrawals and UPI-based transactions. Leading banks, including HDFC Bank and Punjab National Bank (PNB), have announced significant changes to their service terms that will directly impact daily financial activities. These updates are primarily aimed at regulating transaction volumes and managing operational costs.

HDFC Bank has clarified that UPI-based cash withdrawals will now be counted within the monthly free transaction limit. Currently, the bank allows five free transactions per month for savings and salary accounts. From April 1, if you exhaust this limit, you will be charged for any further withdrawals, even if they are made cardlessly via UPI. For transactions at other banks’ ATMs, the limit remains three in metro cities and five in non-metro areas.

In a similar move, Punjab National Bank is revising the daily withdrawal limits for several of its debit card variants. While the specific limits for each card type are yet to be detailed, the bank has confirmed that the daily cap on cash will be reduced for many users. On a brighter note, Jio Payments Bank is set to launch a convenient UPI QR-code-based cash withdrawal service, eliminating the need for debit cards or physical ATMs. As the new financial year kicks in, customers are advised to track their transaction counts carefully to avoid paying extra convenience fees.