HDFC Bank UPI ATM withdrawals to be treated as regular ATM transactions from April 1

The facility, known as Interoperable Cardless Cash Withdrawal (ICCW), allows customers to withdraw cash from ATMs by scanning a UPI QR code on the machine and authorising the transaction through a UPI app, without using a debit card.

What changes from April 1

From April 1, withdrawals made using UPI at ATMs or Cash Recycler Machines (CRMs) will be treated the same as regular ATM withdrawals when calculating the monthly free transaction limit.

If customers exceed the free withdrawal limit, they will be charged ₹23 per transaction plus applicable taxes.

Current free ATM withdrawal limits

• 5 free withdrawals per month at HDFC Bank ATMs

• 3 free withdrawals per month at other bank ATMs in metro cities

• 5 free withdrawals per month at other bank ATMs in non-metro locations

Once these limits are crossed, the standard charges will apply, even if the withdrawal is made using UPI instead of a debit card.

What is ICCW?

ICCW (Interoperable Cardless Cash Withdrawal) is a system developed under the National Payments Corporation of India network that enables cardless ATM withdrawals using UPI authentication.

Transaction limits

₹10,000 per transaction for both HDFC and other bank customers

Up to ₹20,000 per day for HDFC Bank customers (maximum two transactions)

The feature works with major UPI apps, including PayZapp, BHIM, PhonePe, Paytm, and Google Pay.

Why did banks introduce cardless withdrawals

UPI-based ATM withdrawals aim to reduce card-related fraud such as skimming, cloning, and device tampering, while also making cash access easier for customers who may not be carrying their debit card.

However, starting April 2026, these convenient withdrawals will still count toward the same monthly free ATM limit.