SBI to Charge ₹15 for Cash Withdrawals Beyond Four Transactions From October 1: What Customers Need to Know
State Bank of India (SBI) is set to revise the cash-withdrawal rules for customers holding Basic Savings Bank Deposit (BSBD) accounts opened through the branch channel. The revised charges will come into effect from October 1, 2026, according to SBI’s latest service-charge notice.
Under the revised structure, BSBD account holders will continue to receive four free cash withdrawals every month. Once the customer crosses the four-transaction limit, every additional cash withdrawal will attract a charge of ₹15 plus applicable Goods and Services Tax (GST).
The change is important because the four-free-withdrawal facility covers cash withdrawals through multiple channels. SBI’s existing service-charge framework identifies withdrawals through SBI and other bank ATMs, micro-ATMs, branches, customer service points and other permitted cash-withdrawal channels within the free-transaction framework.
For example, if a BSBD customer makes four eligible cash withdrawals in a month, there will be no charge for those four transactions. A fifth withdrawal would attract ₹15 plus GST, and every subsequent chargeable withdrawal during that month would attract the same fee.
The revised rule therefore does not mean that SBI will charge customers for every cash withdrawal. The first four eligible cash withdrawals each month remain free. The financial impact begins only after the monthly free limit has been exhausted.
SBI’s BSBD account is designed as a basic banking facility and is particularly significant for customers who want essential savings-account services without a minimum-balance requirement. The account also provides a free RuPay Classic ATM card under SBI’s service structure.
One important point requires clarification because some reports have described the change as affecting “digital transactions.” SBI’s official service-charge material states that the four free withdrawals are calculated excluding digital transactions, while its current public notice says digital transactions will continue to be free without restriction. Therefore, ordinary digital payments or fund transfers should not be confused with cash withdrawals made through digital-enabled cash channels.
The change is consequently more significant for customers who depend heavily on physical cash. People who frequently withdraw small amounts several times during a month could face additional costs once they cross the four-withdrawal threshold.
The revised fee also comes as banks continue to push customers towards digital banking channels, where transactions can often be carried out without the same cash-handling costs. SBI has separately reiterated that digital transactions will remain free under the revised BSBD framework.
The new rule will apply from October 1, 2026, so customers still have time to understand how their particular BSBD account and withdrawal channel are treated under SBI’s revised schedule. The change should not be interpreted as a new charge applicable to all SBI savings-account customers; the current announcement specifically concerns Basic Savings Bank Deposit accounts operated through the branch channel.
For customers, the practical takeaway is straightforward: four eligible cash withdrawals per month remain free; from the fifth chargeable cash withdrawal onward, SBI will levy ₹15 plus GST per transaction. Customers who can use digital banking for routine payments and transfers can avoid unnecessary cash withdrawals and the resulting charges.
