{"id":196204,"date":"2026-04-09T09:10:00","date_gmt":"2026-04-09T03:40:00","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=196204"},"modified":"2026-04-08T16:31:43","modified_gmt":"2026-04-08T11:01:43","slug":"atm-upi-transaction-rules-april-2026-banking-exam-guide","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/atm-upi-transaction-rules-april-2026-banking-exam-guide\/","title":{"rendered":"New ATM & UPI Transaction Rules (April 2026): A Quick Guide for SBI, IBPS & RBI Assistant"},"content":{"rendered":"
Home<\/a><\/span> \u00bb SBI PO<\/a><\/span> \u00bb New ATM & UPI Transaction Rules (April 2026): A Quick Guide for SBI, IBPS & RBI Assistant<\/span><\/span><\/div>\n\n\n

If you’re preparing for any banking exam in 2026 \u2014 whether it’s RBI Assistant, SBI PO, IBPS PO, or IBPS Clerk \u2014 there’s one area you absolutely cannot afford to ignore: Banking Awareness and Current Affairs<\/strong>.<\/p>\n\n\n\n

And right now, one of the hottest topics examiners are watching is the new ATM and UPI-related rules that came into effect in April 2026<\/strong>.<\/p>\n\n\n\n

This isn’t just GK for the sake of it. These real regulatory changes reveal how the RBI approaches financial inclusion, digital payments, and consumer protection\u2014precisely the insight Mains and Interview rounds test.<\/strong><\/p>\n\n\n\n

So let’s break it all down in simple, clear language. No jargon overload. Just the facts you need, explained the way you’d explain it to a friend.<\/p>\n\n\n\n

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Part 1: ATM Transaction Rules \u2014 What the RBI Has Set<\/h2>\n\n\n\n

Before we talk about what changed in April 2026, let’s make sure you understand the baseline rules that the RBI mandates for all banks<\/strong>. This is important because some changes in April 2026 are at the individual bank level \u2014 not an RBI-wide mandate.<\/p>\n\n\n\n

The “5-3-5” Free Transaction Rule (RBI Mandated)<\/h3>\n\n\n\n

According to RBI’s official FAQ on ATMs (updated July 2025), every bank must offer a minimum number of free ATM transactions<\/strong> to savings account holders:<\/p>\n\n\n\n

ATM Type<\/th>Location<\/th>Minimum Free Transactions<\/th><\/tr><\/thead>
Your own bank’s ATM (On-Us)<\/td>Anywhere in India<\/td>5 free financial transactions\/month<\/td><\/tr>
Other bank’s ATM (Off-Us)<\/td>6 Metro cities*<\/td>3 free transactions (financial + non-financial)<\/td><\/tr>
Other bank’s ATM (Off-Us)<\/td>Non-metro locations<\/td>5 free transactions (financial + non-financial)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The 6 metro cities are: Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi<\/strong>.<\/em><\/p>\n\n\n\n

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Exam Tip:<\/strong> Non-cash transactions on your own bank’s ATM<\/em> (like balance enquiry, cheque book request) are NOT counted toward your free transaction limit. This is a commonly tested fact.<\/p>\n<\/blockquote>\n\n\n\n

What Happens After You Use Your Free Transactions?<\/h3>\n\n\n\n

According to the RBI’s official guidelines, banks can now charge a maximum of \u20b923 per financial transaction<\/strong> (plus taxes) once you exceed your monthly free limit. While the RBI previously capped this fee at \u20b921, the new limit took effect in May 2025 to help banks cover rising ATM maintenance and operational costs. This policy remains the standard across the banking industry today.<\/p>\n\n\n\n

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Part 2: What Changed in April 2026 \u2014 The Key Updates<\/h2>\n\n\n\n

Now here’s where things get important for your exam preparation. April 1, 2026 brought a combination of RBI-directed changes<\/strong> and major bank-level updates<\/strong>. Let’s go through them clearly.<\/p>\n\n\n\n

\ud83d\udd11 Change 1: RBI’s BSBD Account Upgrade (Official RBI Direction)<\/h3>\n\n\n\n

This is the biggest and most exam-relevant update from RBI in April 2026.<\/p>\n\n\n\n

The RBI issued seven Amendment Directions in December 2025<\/strong> to upgrade the framework for Basic Savings Bank Deposit (BSBD) accounts<\/strong> \u2014 the zero-balance accounts designed for financial inclusion. These came into effect from April 1, 2026<\/strong>.<\/p>\n\n\n\n

What are BSBD Accounts?<\/h4>\n\n\n\n

All banks must offer BSBD accounts to their customers without requiring a minimum balance. Through these accounts, the RBI and financial institutions deliver basic banking services to lower-income and underserved sections of society.<\/p>\n\n\n\n

What Did RBI Change?<\/h4>\n\n\n\n

Under the new rules, every bank covered under these directions \u2014 including commercial banks, small finance banks, payments banks, regional rural banks, co-operative banks, and local area banks \u2014 must provide the following free of charge<\/strong> to BSBD account holders:<\/p>\n\n\n\n