HDFC Bank has confirmed its customers will soon see changes to how their ATM transactions are tallied, with the private sector lender all set to begin counting UPI-based cash withdrawals as part of a user’s monthly free ATM transaction limits starting April 1, 2026.
In a recent communication to account holders, the bank confirmed that cardless UPI cash withdrawals will no longer be treated as a separate category. This means these transactions will be bundled with traditional debit card withdrawals when calculating the number of free ATM transactions allowed every month.
As a result, customers who exceed the monthly limit will have to incur the standard ATM withdrawal charges.
The UPI-enabled ATM withdrawal feature allows bank customers to withdraw physical currency without carrying a debit card. Users simply scan a dynamic QR code displayed on a compatible ATM machine’s screen and authorise the transaction securely through a UPI application on their mobile device. This cardless cash facility has been gradually introduced across the Indian banking sector to seamlessly bridge the gap between digital payment ecosystems and traditional access to cash.
As things stand, HDFC Bank’s current fee structure for standard savings and salary accounts offers a customer five free cash withdrawals per month at HDFC Bank ATMs. For transactions made at non-HDFC Bank ATMs, the free withdrawal limit is capped at just three transactions per month in the country’s top six cities, and five per month in all the other locations, including Tier II cities.
HDFC Bank has described the new policy as part of a broader effort to standardise the fee structures across its various banking channels and maintain transparent transaction charges for its user base.
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