India’s largest private lender, HDFC Bank, has announced that UPI-based cash withdrawals will now count towards customers’ monthly free ATM transaction limits, effective from April 1. This change means that cardless UPI cash withdrawals will no longer be treated separately but will be combined with traditional debit card withdrawals for calculating the number of free ATM transactions allowed per month. Customers exceeding the limit will incur standard ATM withdrawal fees, as stated by HDFC Bank.
The UPI-enabled ATM withdrawal feature enables users to withdraw cash without a physical debit card. By scanning a dynamic QR code at a compatible ATM and securely authorizing the transaction via a UPI-enabled mobile app, customers can access this cardless cash withdrawal facility. This initiative has been introduced across the domestic banking sector to bridge the gap between digital payments and physical cash access.
HDFC Bank’s current fee structure provides for five free cash withdrawals per month at HDFC Bank ATMs for standard savings and salary accounts. Additionally, 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’s new policy is part of a broader effort to standardize fee structures across its banking channels and ensure transparent transaction charges for its customers.
In the December quarter of the current financial year (Q3 FY26), HDFC Bank reported a 12.17% year-on-year rise in net profit. Its net interest income (NII) also saw a 6.4% year-on-year increase to Rs 32,615 crore, according to its previous exchange filing. Despite this, HDFC Bank’s shares closed at Rs 881.75 on Monday, marking a 0.64% decline on the BSE. It is important to note that the Indian stock market remained closed on Tuesday due to the Holi festival.
