HDFC Bank to Include UPI ATM Withdrawals in Monthly Limits Starting April 1
Synopsis
HDFC Bank has announced that from April 1, UPI cash withdrawals will count towards monthly limits for free ATM transactions. This change impacts how customers access cash without debit cards, and transparent fee structures are now a priority.
Key Takeaways
UPI ATM withdrawals will count towards monthly limits.
Standard fees apply for exceeding the limit.
Cash can be withdrawn without a debit card.
Free withdrawal limits vary by ATM type.
New policy enhances transparency in transactions.
In a recent announcement from New Delhi, dated March 3, India's leading private bank, HDFC Bank, revealed a significant change regarding cash withdrawals via UPI. Starting April 1, such transactions will be included in the customer’s monthly allowance for free ATM withdrawals.
The bank clarified that cardless UPI cash withdrawals will no longer be categorized separately.
These withdrawals will now be tallied together with conventional debit card transactions when determining the monthly limit of free ATM withdrawals.
According to HDFC Bank, “Customers who surpass the set limit will incur standard ATM withdrawal fees.”
The UPI-enabled ATM feature permits users to withdraw cash without needing a debit card.
To initiate a transaction, customers simply scan a dynamic QR code displayed on the ATM and securely authorize it using a UPI-enabled mobile application.
This cardless cash withdrawal option has been implemented across the banking sector to enhance the accessibility of physical cash while promoting digital payment solutions.
At present, HDFC Bank offers five complimentary cash withdrawals monthly at its own ATMs for standard savings and salary accounts.
Withdrawals from ATMs not operated by HDFC Bank are limited to three free transactions monthly in major metropolitan areas and five in other regions, including Tier-II cities.
The bank indicated that this new directive aims to unify fee structures across all its banking services and guarantee transparent transaction fees for its customers.
In financial reports, HDFC Bank noted a 12.17% year-on-year increase in net profit for the third quarter of the current financial year (Q3 FY26).
Additionally, its net interest income (NII) rose by 6.4% year-on-year to reach Rs 32,615 crore, as per previous filings with the exchange.
On Monday, HDFC Bank shares closed at Rs 881.75, reflecting a decline of 0.64% on the BSE. The Indian stock market will be closed on Tuesday in observance of the Holi festival.
Point of View
HDFC Bank's new policy marks a pivotal shift in customer banking interactions, emphasizing transparency and unified fee structures. This approach not only aligns with digital payment trends but also ensures customers are well-informed about transaction limits.
NationPress
9 May 2026
Frequently Asked Questions
What changes are being made to UPI ATM withdrawals?
Starting April 1, UPI cash withdrawals will count towards the monthly limit of free ATM transactions at HDFC Bank.
Will there be any fees for exceeding the withdrawal limit?
Yes, customers who exceed the monthly limit will be charged standard ATM withdrawal fees.
How can I withdraw cash using UPI at ATMs?
You can withdraw cash by scanning a dynamic QR code at the ATM and authorizing the transaction through a UPI-enabled mobile app.
How many free transactions does HDFC Bank allow?
HDFC Bank provides five free cash withdrawals per month at its ATMs and three at non-HDFC ATMs in major cities.
What is the purpose of this policy change?
The change aims to standardize fee structures and enhance transparency in transaction charges for customers.
