ATM Withdrawal Limits and Charges: Rules Changed From April 2026

From April 1, 2026, a number of major Indian banks have updated their ATM withdrawal limits and transaction fees. The key change is that UPI-based cash withdrawals will now be included within the monthly free transaction quota. 

Revised Transaction Charges

The Reserve Bank of India (RBI) has permitted banks to revise their fees in order to cope with rising operational costs. 

• Post-Limit Charges: Once the monthly free transaction limit is exceeded, most banks now charge ₹23 per financial transaction (such as cash withdrawals), up from the previous ₹21.
• Non-Financial Transactions: After the free limit is used up, services like balance inquiries or mini-statements typically cost between ₹10 and ₹11. 
• Taxes: An additional 18% GST applies to all these charges. 

Free Monthly Transaction Limits

The standard "5-3-5" rule remains the baseline, but with a key update:   

• Own Bank ATMs: 5 free transactions per month. 
• Other Bank ATMs (Metro cities – Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi): 3 free transactions. 
• Other Bank ATMs (Non-Metro): 5 free transactions. 

UPI change (effective April 2026)

UPI-based (cardless) ATM withdrawals now count toward your monthly free transaction limit at banks like HDFC and others. Previously, these were either treated separately or not counted. 

Bank-Specific Daily Withdrawal Limits 

To reduce fraud risks, many banks have lowered the daily transaction limits on specific card variants.   

Important Operational Changes

Insufficient Funds Penalty

Some banks, such as Bandhan Bank, have introduced or raised the fee for declined transactions due to low account balance, now charging up to ₹25 per instance. 

OTP Security

The requirement of an OTP for ATM withdrawals above ₹10,000 at SBI and other major banks remains a standard security measure to prevent unauthorized access. 

Non-Financial "Traps"

Be aware that even non-cash transactions like a "Balance Inquiry" or "PIN Change" at an ATM count toward your free monthly limit. If you've exhausted your 3 or 5 free transactions, checking your balance could cost you ₹10 + GST.   

Tips to Avoid Extra Charges 

To keep costs low under the new rules, you can follow a few simple habits:   

• Track Your Usage: Keep in mind that UPI cash withdrawals now count toward your monthly free limit. Mentally track all ATM usage to avoid going over the free quota. 
• Use Your Own Bank's ATM: Whenever possible, withdraw from your own bank's ATM. For instance, Bandhan Bank customers get a more generous limit of 5 free financial transactions at their own ATMs, and non-financial transactions aren't counted against the limit. 
• Plan Large Withdrawals: With PNB's reduced daily caps, avoid last-minute needs for large amounts of cash. You may have to spread withdrawals over two days or use digital payments for big expenses.
• Shift to Digital Payments: The broader trend is toward reducing cash dependence. Use UPI, net banking, or cards for everyday transactions, and save your free ATM withdrawals for times when you genuinely need physical cash. 

FAQs 

Does a UPI cash withdrawal count as a "free" transaction? 

Yes. Starting April 1, 2026, major banks like HDFC have integrated UPI-based (QR code) withdrawals into your monthly free limit. If you have 5 free transactions at your bank and you use UPI to withdraw cash twice, you only have 3 free attempts left (whether using a card or UPI). 

What happens if I try to withdraw money but have a low balance? 

Most banks now charge an "Insufficient Funds" fee if a transaction is declined because you don't have enough money in your account. For example, Bandhan Bank and HDFC charge approximately ₹25 + GST per failed attempt. 

How much will I be charged once I exceed my free limit? 

• Financial (Cash): ₹23 + 18% GST (Total: ₹27.14)
• Non-Financial (Balance Inquiry/PIN Change): ₹10 to ₹11 + 18% GST (Total: ~₹12-13) 

  Are the limits different in Mumbai or Delhi compared to smaller towns?    Yes. The RBI distinguishes between Metro and Non-Metro locations for "Other Bank" ATM usage: 

• Metro: 3 free transactions (Mumbai, New Delhi, Kolkata, Chennai, Hyderabad, Bengaluru). 
• Non-Metro: 5 free transactions. 

Which transactions are considered "Non-Financial"?    Any ATM activity that doesn't involve cash coming out is non-financial. This includes: 

• Balance Inquiry 
• Mini-statement request 
• PIN change 
• Cheque book request