HDFC Bank revises UPI ATM withdrawal rules

HDFC Bank has announced that UPI-based cardless cash withdrawals will be counted within customers’ monthly free ATM transaction limits from April 1. The move standardises withdrawal charges across channels, with excess transactions attracting regular ATM fees under the bank’s revised policy

New Delhi: India’s largest private lender HDFC Bank has said that the UPI-based cash withdrawals will be counted as part of customers’ monthly free ATM transaction limits. The new development will come into effect starting April 1, according to the official statement. In a communication to account holders, the bank stated that cardless UPI cash withdrawals will no longer be treated as a separate category.

Instead, they will be bundled with traditional debit card withdrawals when calculating the number of free ATM transactions allowed per month. “Customers exceeding the limit will be charged the standard ATM withdrawal fees,” HDFC Bank said.

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The UPI-enabled ATM withdrawal feature allows users to withdraw cash without a debit card.

Customers simply scan a dynamic QR code displayed on a compatible ATM and authorise the transaction securely via a UPI-enabled mobile app.

The cardless cash facility has been rolled out across the domestic banking sector to bridge the gap between digital payments and access to physical cash.

Currently, HDFC Bank’s fee structure offers five free cash withdrawals per month at HDFC Bank ATMs for standard savings and salary accounts.

Withdrawals at non-HDFC Bank ATMs are limited to three free transactions per month in the top six cities and five per month in other locations, including Tier-II cities.

The bank said the new policy is part of a broader initiative to standardise fee structures across its banking channels and ensure transparent transaction charges for customers.

HDFC Bank posted a 12.17 per cent year-on-year (YoY) rise in net profit for the December quarter of the current financial year (Q3 FY26).

Its net interest income (NII) increased 6.4 per cent YoY to Rs 32,615 crore, according to its earlier exchange filing.

Shares of HDFC Bank on Monday ended at Rs 881.75, down 0.64 per cent on the BSE. However, the Indian stock market is closed on Tuesday in account of Holi festival.