(Image source from: India.com)

Banks in India are preparing to implement a variety of adjustments to ATM operations starting April 1, which marks the beginning of the new financial year. These changes, revealed by major banks and payment institutions, are likely to impact withdrawal caps, transaction fees, and customer access to cash. HDFC Bank, a private lender, has stated that cash withdrawals through UPI at ATMs will now be counted as part of the monthly free transaction limit. Formerly regarded as a different category, these withdrawals will now be included in the overall count of free transactions permitted. Customers who go over their monthly allowance will incur a fee of Rs 23 for each transaction, not including taxes. Currently, most clients can make five free withdrawals each month at HDFC Bank ATMs, along with three complimentary transactions in major cities and five in smaller towns at ATMs belonging to other banks. On the other hand, Punjab National Bank, a public sector entity, has changed its daily cash withdrawal caps for certain debit cards. According to the new guidelines, customers can withdraw between Rs 50,000 and Rs 75,000 each day, depending on the type of card they possess.

Some cards that used to allow withdrawals of up to Rs 1,00,000 now have lower limits. This adjustment aims to create consistency in usage and enhance risk management. Additionally, Jio Payments Bank has launched a new service for cash withdrawal using a QR code. This feature enables customers to take out money by scanning a UPI QR code and confirming the transaction through a UPI app at specific banking agents. These updates signify a larger movement towards digital banking while tightening the rules on cash transactions. Customers should check their specific bank limits and monitor their transactions closely to prevent extra fees.