New ATM Rules for Indian Expats in the UAE Starting in March

Little changes. Money that is real. And a few surprises that are easy to see.

For millions of Indian expats living and working in the United Arab Emirates, taking out cash is a normal part of life. Pay your rent. Food. Tuition fees. An odd emergency.

ATMs, which hum quietly on street corners and in malls, make all of that possible very quickly and almost without being seen.

But starting in March, that routine will be different.

Not in a big way.
Not in a day.
Still, it’s enough to matter.

Banks in the UAE are modifying their ATM rules, and although the changes may seem technical on paper, they will have a real impact on Indian expats, especially those who use cards issued outside the UAE or frequently need to withdraw cash.

Let’s take our time and go over what’s changing, why it matters, and how you can avoid extra fees or awkward moments at the machine.

Why ATM Rules Are Changing Now

This didn’t just happen out of the blue.

For years, banks in the UAE have been working to improve fee transparency, enhance digital security, and clarify the rules surrounding interbank transactions.

Regulators thought it was time to clean things up because of the rising number of transactions, especially from expat communities.

A high-ranking banker in Dubai casually said this:

“People built ATMs to make things easier, but the way they charge for them has changed.
Not everything can be taken in by banks anymore.”

Starting in March, banks in the UAE will all have to follow the same set of rules for ATMs.

Not all at once.
Not the same.
But the way is clear.

Who Should Care?

The short answer is? Most Indians who live abroad.

Especially if you:

Use Indian bank debit cards in the UAE
Take out cash several times a month
Use non-home bank ATMs
Send or get money between India and the UAE often
Prefer cash to digital payments for everyday costs

If that sounds like you, even a little bit, keep reading.

The Big Change: There Will Be Fewer Free ATM Withdrawals

This is the main issue.

What’s new since March?

When you use an ATM that doesn’t belong to your own bank, banks are cutting back on the number of free ATM withdrawals you can make each month.

After you go over that limit, fees will automatically apply.

And yes, they do add up.

Some common changes are:

A limit on how many free withdrawals you can make between banks each month
Fees of Dh2 to Dh3.50 per transaction after the free limit
Extra fees for checking your balance at ATMs that aren’t your home bank

It might not seem like much to pay Dh3.

But if you take out cash 10 or 12 times a month, you’re paying for convenience without even knowing it.

Why Indian Expats Are More Affected

Here’s the fine point.

Many Indians who live in the UAE still use Indian-issued debit cards, especially those who are new to the country, work there for a short time, or send money home regularly.

These cards already have:

Fees for transactions outside the country
Fees for changing currency
Costs of using ATMs at the network level

Now, on top of that, add the UAE-side ATM fees.

It’s a layered cost structure that is quiet but always there.

A logistics manager from Kerala who works in Abu Dhabi made it simple:

“I never looked at the small fees. But more than a year? There were thousands of dirhams.”

More and more people are coming to that conclusion.

Daily Withdrawal Limits Are Being Followed More Closely

Another change that people aren’t expecting.

What’s going on?

Banks are now strictly enforcing daily cash withdrawal limits, especially on foreign-issued cards.

In real life, that means:

Lower limits on how much you can withdraw each day
Transactions will automatically be declined once limits are reached
No manual overrides at ATM kiosks

This is partly about stopping fraud and partly about keeping money flowing.

If you’re used to taking out a lot of money all at once, like for rent or tuition, you might need to plan.

Currency Conversion: Less Freedom, More Information

There is also a change in how currency conversion works.

ATMs will now show more clearly:

Used exchange rates
Extra margins for conversion
Prompts for confirmation before processing

That’s good for being open.

But it also means you can’t “skip” conversion costs without knowing it anymore.

And here’s the problem:
If you choose “Yes” at the conversion prompt, you might get a less favorable rate than what your home bank would offer.

A lot of people tap through these screens without thinking.

That habit could cost more starting in March.

Balance Inquiries May No Longer Be Free

It sounds unimportant.
It isn’t.

A few banks are starting to charge people who want to check their balance at ATMs that aren’t their own.

Not taking money out.
Just looking at your balance.

The fee is small, but it adds up if you use it more than once.

If you check your balance before every withdrawal, which a lot of people do, that’s another hidden cost that adds up.

Security Checks Are Getting More Strict

Not every change has to do with money.

Some are about safety.

Expect more:

Confirmations for some ATM transactions based on OTP
Temporary blocks on cards after several failed attempts
More strict checks on unusual withdrawal patterns

This could mean that Indian expats who send money home or take it out at odd times have to wait sometimes.

Annoying? Sometimes.
Safe? Yes, of course.

Banks say that there have been more cases of fraud with cross-border cards, and they say that tighter controls are necessary.

What About Indian Bank Cards in Particular?

Let’s be clear.

Debit cards issued in India still work in the UAE.
That hasn’t changed.

But starting in March:

The success of a transaction may depend on international usage being turned on
Some ATMs may not accept cards that don’t have updated chip-and-PIN compliance
Charges are now shown more clearly, but they haven’t gone down

You might want to check if your card hasn’t been updated in a long time.

Quietly Pushing for Digital Payments

This is what isn’t said.

Banks would rather you not use cash at all.

ATMs are no longer the most important way to get money in the UAE because contactless payments, mobile wallets, and instant transfers are all becoming more popular.

So, are ATM fees going up?
They also give you a push.

If you are comfortable using digital banking, especially for local UAE accounts, these changes will probably not affect you as much.

What Indian Expats Can Do Right Now

There’s no need to panic.
Just a little planning.

Steps to take to avoid extra fees:

Be aware of your free withdrawal limit
Use your own bank’s ATMs as much as you can
Take out less often but larger amounts
Don’t ask for balance checks that aren’t necessary
Make sure that your Indian debit card can be used internationally
If you haven’t already, think about opening a bank account in the UAE

Small changes.
A big change over time.

A Change That Will Last for a Long Time

This isn’t a big policy change.

No sudden bans.
No headlines screaming “crisis.”

But these new ATM rules are just one more thing for Indian expats to think about, since they already have to deal with exchange rates, remittance costs, and cross-border finances.

It’s about being aware.
And timing.

Because the machine won’t warn you twice after March.