New Banking Rules from April 1 ... Charges on UPI & ATM Transactions

With the start of the financial year 2026–27, several banking rules are set to change. The Reserve Bank of India along with various banks has updated transaction policies. Earlier, withdrawing cash using UPI at ATMs was either free or treated separately. From April 1, such transactions will be counted under monthly free ATM transaction limits. Once the free limit is exceeded, each UPI-based withdrawal will attract a charge of ₹23 plus applicable taxes.

Banks like HDFC Bank are implementing these changes. Additionally, Punjab National Bank has reduced daily ATM withdrawal limits on select debit cards from ₹1 lakh to ₹50,000.

Customers of Bandhan Bank can make up to 5 free transactions per month at their own ATMs, while only 3 free transactions are allowed at other bank ATMs in metro cities. Beyond this limit, ₹10 will be charged per transaction. To enhance security, digital payments will now require two-factor authentication, including OTP along with PIN or biometric verification. Frequent balance checks via apps may also incur nominal charges.