Major Rule Change For HDFC Bank From April 1, UPI Transactions May Become Costlier For Customers

HDFC Bank has announced a key change to its ATM transaction policy, informing customers that cash withdrawals made through UPI at ATMs will soon be included within the monthly free transaction cap. The revised rule will come into force from April 1, 2026, and will apply across savings and salary account holders.

UPI ATM Withdrawals To Be Included In Free Limit

In a communication sent to customers, the private sector lender clarified that UPI-based cash withdrawals will no longer be treated as a separate category.

"UPI cash withdrawals at ATMs will be included as part of your monthly free ATM transaction limit," the bank said in the mailer.

This means that every cardless cash withdrawal made using UPI at an ATM will count towards the total number of free transactions allowed each month. Once the free quota is exhausted, standard charges will be levied.

Charges Applicable After Free Transactions

The bank also specified the fee structure that will apply once customers exceed their monthly limit.

"Once the free limit is exhausted, a fee of Rs. 23 + taxes per withdrawal will apply," it stated.

At present, savings and salary account holders are entitled to five free withdrawal transactions at HDFC Bank ATMs each month. For transactions carried out at non-HDFC Bank ATMs, customers receive three free withdrawals in top six cities and five in non-top six cities.

With the upcoming change, UPI-based ATM withdrawals will be counted within these existing limits rather than being treated independently.

Bank Cites Transparency And Uniformity

HDFC Bank described the update as part of a broader effort to bring uniformity to its fee framework across different transaction channels.

"This update is in line with our commitment to maintaining transparent and consistent transaction charges," the communication said.

The move effectively standardises how ATM withdrawals are counted, whether carried out using a debit card or through UPI.

How UPI-Enabled ATM Withdrawals Work

UPI-enabled ATMs allow customers to withdraw cash without inserting a debit card. Users simply scan a QR code displayed on a compatible ATM screen using their UPI application and authorise the transaction on their mobile device.

The feature has been gradually introduced across banks to promote secure, cardless cash access and reduce dependence on physical cards.

From April 2026, however, customers using this facility will need to track their monthly ATM usage more closely, as UPI-based withdrawals will now form part of their overall free transaction limit.