HDFC Bank, India’s largest private sector lender, has announced key changes to its ATM cash withdrawal policy that will affect customers from April 1, 2026. Under the new rules, UPI-based cash withdrawals at ATMs will now count toward customers’ monthly free transaction limits, aligning them with traditional debit card ATM cash withdrawals and potentially attracting charges once those limits are exceeded.

Key Highlights

• HDFC Bank to include UPI ATM withdrawals under monthly free transaction limits.
• Customers exceeding free limit will pay ₹23 plus taxes per withdrawal.

In a formal communication to account holders, the bank clarified that cardless UPI cash withdrawals would no longer be treated as a separate category and will be integrated into the existing withdrawal framework. This policy shift comes into effect at the start of the next financial year and reflects HDFC Bank’s intent to standardise transaction rules amid evolving customer behaviour.

Limits and Charges Explained

Until now, many customers could perform UPI-based cardless withdrawals at HDFC Bank ATMs without impacting their free monthly count. From April, however, these will be treated the same as regular ATM cash withdrawals. Account holders enjoying five free monthly ATM transactions at HDFC Bank ATMs will see UPI withdrawals included in this tally. Once free limits are exceeded, a fee of ₹23 plus applicable taxes per transaction will be charged.

For ATM withdrawals at other banks, the free limits remain unchanged — three free transactions per month in metro cities and five in non-metro locations — after which similar charges apply. Customers are advised to monitor both debit card and UPI transactions closely to avoid additional fees.

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Banking analysts say the move is part of an industry-wide trend toward harmonising digital and physical channels, ensuring consistent fee structures across ATM cash withdrawal methods. It also underscores the increasing use of UPI for cardless cash access — a convenience that has grown significantly in recent years.

HDFC Bank has not indicated any change to international ATM charges under this new rule, which will continue to attract separate fees depending on country and card type.

Customers holding certain current account categories may still enjoy unlimited free withdrawals at HDFC Bank ATMs, but savings and salary account holders must be especially mindful of the revised transaction count.