HDFC Bank To Count UPI ATM Cash Withdrawals Within Monthly Free Transaction Limit From April 1, 2026

Customers of HDFC Bank will soon notice a significant change in the way their ATM usage is calculated. Starting April 1, 2026, cash withdrawals made through UPI at ATMs will be included in the bank’s monthly free ATM transaction limits.

The lender has officially informed account holders that cardless cash withdrawals carried out via UPI will no longer fall under a separate category. Instead, these transactions will now be added to regular debit card withdrawals when determining the number of free ATM transactions available each month.

As a result, customers who cross their permitted monthly limit will be required to pay the standard ATM withdrawal charges, regardless of whether the transaction was made using a debit card or through UPI.

How the UPI ATM Withdrawal Facility Works

The UPI-based ATM withdrawal feature enables customers to withdraw cash without using a physical debit card. At supported ATMs, users simply scan a dynamic QR code displayed on the machine’s screen and approve the transaction securely through a UPI app on their smartphone.

This cardless cash system has been gradually introduced across India’s banking network, aiming to connect digital payment platforms with conventional cash access. The feature enhances convenience while ensuring secure authentication through UPI.

Existing Free ATM Transaction Structure

Under the current fee framework for regular savings and salary account holders:

Customers receive five free cash withdrawals per month at HDFC Bank ATMs.

For transactions conducted at non-HDFC Bank ATMs:

Three free withdrawals per month are allowed in the six major metropolitan cities.

Five free withdrawals per month are permitted in other areas, including Tier II and smaller cities.

After these free limits are exhausted, applicable ATM withdrawal charges are levied.

Reason Behind the Revision

HDFC Bank has explained that this step forms part of a broader effort to standardise fee structures across various banking channels and maintain transparency in transaction-related charges. By bringing UPI-based ATM withdrawals under the same framework as debit card withdrawals, the bank seeks to create a more uniform system for tracking free transactions.

Customers may now need to keep a closer watch on their monthly ATM usage, as even UPI-based cash withdrawals will count toward the free limit from April 2026. While the convenience of cardless withdrawals remains unchanged, the way they are calculated is set to shift — making awareness and careful planning more important than ever.