# Punjab National Bank Overhauls Credit Card Tariff: Steep Hike in Cash Advance, Late Fees and Utility Bill Charges From November 1, 2026

> Punjab National Bank is set to implement higher charges for credit card holders starting November 1, 2026. The revised pricing structure impacts ATM cash withdrawals, late payment penalties, reward point redemptions, and high-value utility spends.

**Type:** article · **Category:** Market · **Published:** 2026-10-30 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/pnb-credit-card-new-rules-cash-withdrawal-late-fees-aur-reward-rules-badle-53529 · **Language:** English
**Tags:** Punjab National Bank, PNB Credit Card, Credit Card Charges, Cash Advance Fee, Late Payment Fee, RuPay Card, Visa Card

Punjab National Bank cardholders will face an updated and steeper fee structure starting November 1, 2026. The public sector lender has revamped service costs across several operational categories, covering cash withdrawals, delayed settlement penalties, dishonored auto-debit requests, loyalty reward redemptions, paper statement requests, and large utility bill transactions. These revised terms primarily apply to Visa and RuPay branded cards, with dedicated pricing guidelines maintained for credit cards backed by fixed deposits.

## Sharper Charges on ATM Cash Advances
Borrowing cash against a credit card limit will carry higher upfront costs under the new schedule. For applicable cash advances, the transaction fee has been raised to 2.5 percent of the withdrawn sum or a flat Rs 400, whichever amount is greater. Under the earlier policy, customers paid 2 percent of the amount, subject to a minimum charge of Rs 150 or Rs 200.

For cash withdrawals executed at domestic ATMs belonging to other banking networks or through international ATM locations overseas, the fee is now fixed at 2.5 percent or Rs 500, whichever is higher. Standard finance charges, revolving interest rates, and applicable taxes will continue to be levied on cash withdrawals over and above these flat advance fees.

## Revised Tiered Structure for Late Payment Charges
PNB has established a fresh slab system for cardholders who fail to settle their Visa and RuPay credit card dues by the payment deadline

- Outstanding balances of Rs 500 or lower: No late payment fee will be levied.
- Outstanding balances between Rs 501 and Rs 1,000: A fee of Rs 500 will apply.
- Outstanding balances between Rs 1,001 and Rs 10,000: A fee of Rs 750 will be charged.
- Outstanding balances between Rs 10,001 and Rs 50,000: A penalty of Rs 1,000 will be enforced.
- Outstanding balances exceeding Rs 50,000: The late charge will stand at Rs 1,200.

Previously, accounts with unpaid balances of up to Rs 1,000 were entirely exempt from late fees, while overdue amounts exceeding Rs 10,000 drew a maximum penalty of Rs 750. For customers holding credit cards issued against fixed deposits, the structure stays unchanged at 30 percent of the minimum amount due, capped with a minimum floor of Rs 200 and an upper ceiling of Rs 500 per billing cycle. Meanwhile, regular Luxura card terms will govern both the PNB Metal Credit Card Luxura and PNB Luxura cards linked to fixed deposits.

## Penalties on Failed Auto-Debits and Bounced Cheques
Payment dishonor will result in immediate financial penalties. For eligible Visa and RuPay cards, a bounced cheque, failed Electronic Clearing Service (ECS) mandate, or unsuccessful auto-debit deduction will attract a fee of 2 percent of the transaction value, subject to a minimum penalty of Rs 400. In contrast, fixed deposit-backed cards will draw a lower fee of Rs 100 per instrument failure. Unresolved failures that leave account balances unpaid past the grace period will also trigger standard late payment charges.

## Fees on Reward Redemptions and Paper Statements
The bank is also discontinuing free processing for loyalty rewards. Customers redeeming accumulated reward points on eligible Visa and RuPay credit cards will be billed Rs 99 per redemption request, a facility that was previously provided without any charge.

In addition, cardholders who request physical duplicate account statements covering cycles older than three months will be assessed a fee of Rs 50 per requested month. Electronic statements delivered via digital channels and email will continue to remain completely free of cost.

## Surcharge on Large Utility Payments
Consumers who routinely charge household utilities to their credit cards will see a new threshold fee. If cumulative utility bill settlements surpass Rs 50,000 within a single billing cycle, PNB will levy a surcharge of 1 percent on the entire billed transaction amount, capped at a maximum of Rs 2,000 per transaction, alongside applicable statutory taxes. This fee applies to qualifying Visa and RuPay variants and replaces the earlier zero-fee framework. Card users should adjust auto-debit limits, verify bank balances, and plan out cash needs in advance to avoid these increased operational expenses.

## What this means for you
These revisions directly raise out-of-pocket expenses for cardholders and penalize delayed settlements, cash transactions, and high-value spending.

- **Higher Cash Withdrawal Costs:** Withdrawing emergency funds at ATMs now incurs a steep floor fee of Rs 400 at own-bank machines or Rs 500 at other bank ATMs. Cardholders should avoid using credit cards for routine cash requirements to steer clear of these baseline costs.
- **Penalty on Small Delinquencies:** Even modest unpaid balances between Rs 501 and Rs 1,000 now trigger a flat Rs 500 fine where earlier no penalty was levied. Consumers must ensure that monthly dues are paid in full well before the due date.
- **Account Balance Monitoring:** Dishonored standing instructions or bounced auto-debit payments will attract a minimum Rs 400 charge alongside potential late fees. Account holders should verify their savings balances ahead of scheduled debit dates.
- **Value Erosion on Rewards:** Redeeming accumulated credit card loyalty points now comes with a flat Rs 99 processing fee per claim. Users should pool points and submit fewer, larger redemptions rather than claiming small items frequently.
- **Surcharge on Utility Bills:** Routing more than Rs 50,000 in monthly household utilities through the card will incur a 1 percent fee up to Rs 2,000 per payment. Households making large utility payments should evaluate alternate payment methods to prevent extra fees.

## Why this happened
The revisions are designed to align administrative fee structures with rising handling costs and strengthen repayment discipline across credit card products.

- **Managing Operational and Recovery Costs:** Card cash advances and default administration impose operational overheads and liquidity risks on the lender. Increasing processing floors helps offset operational expenditures associated with unsecured short-term credit.
- **Encouraging Repayment Discipline:** Removing fee waivers on sub-Rs 1,000 overdue balances and penalizing failed debit mandates deters casual payment delays. These measures ensure cardholders prioritize timely dues clearance, curbing credit default risks.
- **Rationalizing Value-Added Services:** Uncapped rewards processing and large third-party merchant settlements like utility payments generate processing costs for the issuer. Introducing selective fees helps manage merchant clearing costs while promoting digital statement adoption over paper duplicates.

## Questions & Answers

### 1. When do the revised PNB credit card rules come into effect?
The new tariff structure takes effect starting November 1, 2026 across eligible card variants.

### 2. What will be the fee for credit card cash withdrawals?
The charge is 2.5 percent of the withdrawn sum or a minimum of Rs 400, increasing to a Rs 500 minimum at other bank or international ATMs.

### 3. Is there a late payment penalty on dues below Rs 1,000?
Yes, outstanding balances between Rs 501 and Rs 1,000 will attract a Rs 500 fee, while dues of Rs 500 or less remain free.

### 4. What is the new charge for redeeming reward points?
PNB will levy a flat fee of Rs 99 for every eligible reward redemption request on Visa and RuPay cards.

### 5. When does the surcharge on utility bill payments apply?
The 1 percent fee applies when total utility spends exceed Rs 50,000 in a billing cycle, capped at Rs 2,000 per transaction.

### 6. Are there charges for requesting duplicate credit card statements?
Duplicate statements older than three months cost Rs 50 per month, while regular digital e-statements remain free.

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