In the era of digital payments, withdrawing cash through UPI at ATMs has become very easy. But now, this facility is going to change.
HDFC Bank, India’s largest private sector bank, has announced new rules for cash withdrawals using UPI at ATMs. These changes may directly affect customers’ expenses.
Since UPI was introduced, people have been able to withdraw cash from ATMs without using a debit card. However, if you are planning to use UPI for ATM withdrawals, this update is important for you.
The bank has informed customers by email that the new rules will come into effect from April 1, 2026.
From this date, UPI cash withdrawals at ATMs will be included in your monthly free ATM transaction limit. This means the service will no longer remain completely free.
Charges on UPI ATM Withdrawals
If you cross your free monthly ATM transaction limit, each additional cash withdrawal will cost ₹23 plus applicable taxes.
According to the bank, this step has been taken to make ATM transaction charges more transparent and consistent. Customers are advised to keep track of their monthly free ATM limit to avoid extra charges.
It is also important to note that the ₹23 charge after crossing the free limit is already applicable from May 1, 2025 for regular ATM withdrawals.
Free ATM Transaction Limits at HDFC Bank
Here are the current rules for different account types:
Savings and Salaried Accounts
At HDFC Bank ATMs: 5 free cash withdrawals per month
At Other Bank ATMs:
3 free withdrawals in top cities
5 free withdrawals in non-top cities
For these customers, only cash withdrawal transactions at HDFC Bank’s own ATMs fall under the chargeable category after crossing the free limit.
Savings Max Account
At HDFC Bank ATMs: Free
At Other ATMs: 15 free withdrawals
Current Account (Select Variants)
At HDFC Bank ATMs: Free
At Other ATMs:
3 free withdrawals in top cities
5 free withdrawals in non-top cities
After crossing the prescribed free limit, every additional withdrawal will be charged ₹23 plus applicable taxes.
Rules for Using Other Bank ATMs
When customers use non-HDFC ATMs, the free transaction limits are:
Maximum 5 free transactions per month (financial + non-financial combined)
In top 6 cities: Only 3 free transactions
In other cities: 5 free transactions
The top 6 cities are:
Mumbai
New Delhi
Chennai
Kolkata
Bengaluru
Hyderabad
Transactions done in these cities are counted under the “top cities” category.
Charges After Free Limit at Other ATMs
Once the free limit is crossed:
Cash Withdrawal: ₹23 plus applicable taxes per transaction
Non-Financial Transactions (like balance inquiry): ₹8.5 plus applicable taxes
Who Will Not Be Charged?
ATM transaction charges will not apply to customers with:
Imperial variant accounts
Preferred variant accounts
Classic variant accounts
Important Timing Rule
The bank has clarified that from April 1, 2026, UPI withdrawals at ATMs and CRMs will also count toward the monthly free limit.
Also, ATM transactions made after 7:30 PM in India will be counted for the next day. If a transaction is done after 7:30 PM on the last day of the month, it will be counted in the next month’s limit.
Customers should carefully monitor their ATM usage to avoid unexpected charges under the new rules.
