Major Indian banks including HDFC Bank, Punjab National Bank, and Bandhan Bank are set to implement significant changes to their ATM withdrawal policies starting April 1, 2026. These updates coincide with the start of the new financial year and will directly affect how customers access their cash and manage daily transaction limits. Account holders need to be aware of these shifts as they involve new fees for cardless transactions and tighter restrictions on daily spending amounts.

HDFC Bank is introducing a notable change by integrating UPI-based cash withdrawals into the existing monthly free transaction quota. Previously, withdrawing money using a QR code was often treated separately, but it will now count toward the standard limit allowed for each customer. Once a user exceeds their monthly allowance for these transactions, the bank will charge a fee of 23 rupees plus applicable taxes for every additional withdrawal made at an automated teller machine.

Punjab National Bank has decided to slash the daily withdrawal limits across several of its debit card categories to enhance security and manage liquidity. Some standard cards that previously allowed withdrawals of up to 100,000 rupees per day will now be capped at 50,000 rupees. High-end premium cards are also seeing a reduction, with daily limits dropping from 150,000 rupees to 75,000 rupees, meaning customers needing larger sums may have to plan their visits over multiple days.

Bandhan Bank is also adjusting its fee structure for both financial and non-financial activities at ATMs situated in different regions. Customers will get five free transactions at their home bank machines, while limits at other banks vary between three visits in metro areas like Mumbai and Delhi to five visits in smaller towns. If a transaction fails because of insufficient funds in the account, the bank plans to levy a 25 rupee penalty, highlighting the importance of checking balances before attempting a withdrawal.

The definition of metro cities for these rules includes major hubs such as Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi. All other locations across the country fall under the non-metro category where slightly more flexible rules often apply for third-party machine usage. Banking customers are encouraged to review their specific card terms before the April deadline to avoid unexpected charges or being caught off guard by the new lower daily limits.