State Bank of India will use the new rules to count free cash withdrawals of customers with Basic Savings Bank Deposit accounts. The new rules will take effect October 1, 2026.
Under the new system, customers are still getting four free withdrawals every month. But SBI will have some digital withdrawals in the same monthly limit.
Once a customer has made four withdrawals, every additional withdrawal will attract Rs 15 plus GST. The charge will apply if the withdrawal takes place at an SBI branch, an SBI ATM or another bank’s ATM.
The change is important for people who deal in cash frequently and hold a Basic Savings Bank Deposit account. These accounts are designed to offer basic banking services, and are often used by people who want to keep an account without a minimum balance requirement.
What is changing from October 1?
SBI currently allows BSBD account holders four free cash withdrawals every month. Digital transactions are not counted in this four transaction limit.
That will change from October 1.
SBI will bring digital withdrawals into the same four transaction limit. This will mean that customers will have to keep track of both their cash and digital withdrawal transactions.
For example, suppose a customer makes two cash withdrawals and two eligible digital withdrawals in a month. The customer would have used all of the four free transactions.
Any eligible withdrawal after that would be charged Rs 15 plus GST.
The charge will apply regardless of whether the customer makes an SBI branch, SBI ATM or a bank ATM in another bank.
Frequent withdrawals may be required by customers who withdraw small amounts of cash.
The new rule is specific to cash withdrawals. SBI has also said that non-financial transactions and fund transfers will not be affected by this change.
It is also important to note that the rule applies to Basic Savings Bank Deposit accounts. Regular savings account holders should not assume that the same four transaction rule holds for them.
SBI has previously revised several ATM and transaction charges for different types of accounts. For example, the bank revised charges for withdrawals at other bank ATMs and some salary accounts in December 2025.
The latest change comes in a different direction and concerns BSBD accounts.
How can SBI customers avoid extra charges?
Customers with a BSBD account can avoid the unnecessary charges by keeping track of their monthly withdrawals.
The easiest way is not to make several small cash withdrawals when one larger withdrawal can cover planned expenses. But customers should only take in the amounts that they really need and should continue to follow their plan of spending on a monthly basis.
People should also remember that the four transaction limit resets each month. A customer who reaches the limit in one month will get a fresh set of four free withdrawals in the next month.
BSBD accounts are designed to provide basic banking access without customers needing to maintain a minimum balance. This makes them useful for people who may have limited income or want a simple savings account.
For such customers, even a charge of Rs 15 plus GST can matter if they make several additional withdrawals every month.
The new rules therefore make it more important for account holders to know how SBI counts their transactions.
In doing so, customers should not assume that every digital transaction is treated in the same way. This new rule applies only to eligible withdrawal transactions and fund transfers and non-financial transactions are not covered by this charge.
People who do not know their account type or the number of transactions counted under the monthly limit can check their account details or contact SBI before making frequent withdrawals.
The change does not mean that SBI customers will have to pay for every cash withdrawal. Four withdrawals will remain free each month for BSBD account holders.
The additional charge starts only after the free limit is exhausted.
For the cash user who only withdraws a few times a month, the change doesn’t seem to have much financial impact. But the customer who frequently withdraws small amounts might pay more.
And the new rule also shows that customers must track changes in banking service charges. A small fee could appear small on the surface, but repeated charges can add up.
But from October 1, SBI BSBD account holders will need to be more careful about how they use their four free monthly withdrawals.
The numbers are simple. Customers will get four free withdrawals per month and withdrawals above that limit will cost Rs 15 plus GST per transaction.
The main change is that SBI will now count digital withdrawals within the same four transaction limit.
Cash is really the first thing customers like to have, and planning withdrawals well ahead would help them avoid going over the line.
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