HDFC Bank to Count UPI-Based Cash Withdrawals Within Monthly Free ATM Limits from April 1

New Delhi, March 2026 : India’s largest private sector lender, HDFC Bank, has announced a key change in the way cash withdrawals are counted, stating that UPI-based cardless cash withdrawals will now be included within customers’ monthly free ATM transaction limits. The revised policy will come into effect from April 1, the bank said in an official communication to its account holders.

Under the new framework, cardless cash withdrawals made through UPI-enabled ATMs will no longer be treated as a separate category. Instead, they will be bundled together with conventional debit card-based ATM withdrawals while calculating the number of free transactions available to a customer in a month. Once the prescribed free limit is exhausted, standard ATM withdrawal charges will apply, in line with the bank’s existing fee structure.

The move marks an important shift as UPI-based ATM withdrawals have gained popularity for their convenience and security. This feature allows customers to withdraw cash without carrying a physical debit card. Users simply scan a dynamic QR code displayed on a compatible ATM screen and authorise the transaction through their UPI-enabled mobile application, reducing the risk associated with card loss or skimming.

HDFC Bank clarified that the change is part of a broader effort to standardise charges across different banking channels and ensure greater transparency in transaction-related fees. By bringing cardless withdrawals under the same umbrella as traditional ATM transactions, the bank aims to simplify its pricing structure and make it easier for customers to track their monthly usage.

At present, HDFC Bank offers five free cash withdrawals per month at its own ATMs for customers holding standard savings and salary accounts. For withdrawals at non-HDFC Bank ATMs, customers are entitled to three free transactions per month in the top six metropolitan cities and five free transactions in other locations, including Tier-II and smaller cities. The same limits will now apply collectively to both debit card and UPI-based cash withdrawals.

The announcement comes at a time when the bank continues to report steady financial performance. HDFC Bank recorded a 12.17 per cent year-on-year increase in net profit for the December quarter of the current financial year (Q3 FY26). Its net interest income also rose by 6.4 per cent year-on-year to Rs 32,615 crore, as per an earlier regulatory filing.

Meanwhile, shares of HDFC Bank closed at Rs 881.75 on Monday, down 0.64 per cent on the BSE. Trading on the Indian stock exchanges remained closed on Tuesday due to the Holi festival.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)