Dan,
Not even close to that size. Much smaller. The hole size is the same as an XLR connector. I used a 15/16" Greenlee chassis punch to make the main hole, and then drilled the screw mounting holes. 15/16" gave a good fit. A 24mm punch would work as well.
I used XLR connectors for all of my panel connections, including my limit sensors. That way, I only needed one punch to do it all. As you probably already know, chassis punches are pretty expensive. I suppose you could use a step drill, but there would some burr cleanup do deal with.
Gary