Charges for ATM cash withdrawals to apply from October 1; SBI customers take note
SBI has revised cash withdrawal rules for BSBD account holders, effective October 1, 2026. Customers may incur additional charges if they exceed the stipulated free withdrawal limit.
With UPI charges set to take effect from October 15, the country’s largest public sector bank, SBI, has already modified cash withdrawal rules for certain customers starting October 1, 2026. Under the new regulations, customers will have to pay extra charges for cash withdrawals exceeding the designated free limit. If you hold an account with the State Bank of India (SBI) and frequently withdraw cash via ATMs or other channels, it is crucial to understand these new rules before making a withdrawal.
Notably, this change does not apply to all SBI account holders. The rule specifically targets customers holding Basic Savings Bank Deposit (BSBD) accounts opened through bank branches. Let us look at what is changing from October 1 and the potential charges for cash withdrawals.
How many free cash withdrawals are allowed per month?
In a post on its official platform ‘X’, the State Bank of India stated that BSBD account holders are entitled to a specific number of free cash withdrawals each month. Even after October 1, customers will continue to enjoy up to four free cash withdrawals per month; meaning, there will be no extra charge for these four transactions. However, exceeding this limit will result in charges for additional transactions.
— State Bank of India (@TheOfficialSBI) August 20, 2026
Cash withdrawals are free up to four times.
A charge of ₹15 will apply for every cash withdrawal made after the initial four transactions.
Applicable GST will also be charged on top of this amount.
In simple terms, while four monthly cash withdrawals remain free, exceeding this limit will result in an additional financial burden.
Will charges apply to digital transactions?
According to SBI, these changes will not affect digital transactions. This means customers can continue to make digital transactions easily and free of charge, just as before, with no limit on the number of such transactions. Consequently, the new charges will apply only to transactions that exceed the free cash withdrawal limit.
Changes to AePS Transaction Rules
SBI has also revised the rules regarding transactions made via the Aadhaar Enabled Payment System (AePS). Previously, AePS transactions were classified as digital transactions and were excluded from the monthly limit of four free cash withdrawals. However, SBI has now withdrawn this exemption; under the revised guidelines, cash withdrawals made via AePS will also be subject to the new rules.
Previous Changes by SBI
SBI had also revised interest rates on domestic bulk fixed deposits of ₹3 crore or more in August. According to the bank, the new interest rates came into effect on August 15.
Additionally, the bank recorded an improvement in its financial performance for the first quarter of the 2027 fiscal year. SBI’s net profit for the April-June quarter stood at ₹21,121 crore, marking a 10.23% increase compared to the ₹19,160 crore reported in the corresponding quarter of the previous fiscal year.
