State Bank of India (SBI) has announced revised service charges for its Basic Savings Bank Deposit (BSBD) account holders, with new rules set to take effect from October 1, 2026. The changes primarily impact cash withdrawal limits and the types of transactions counted towards these limits.
New Withdrawal Charges Explained
Under the updated regulations, BSBD account holders will continue to receive four free cash withdrawals each month. However, any subsequent cash withdrawal beyond these initial four will incur a charge of Rs 15, plus applicable Goods and Services Tax (GST), per transaction.
A significant revision is how the monthly free withdrawal limit is calculated. Previously, digital transactions were excluded from this count. The new framework removes this exclusion, meaning all types of cash withdrawals will now count towards the four free transactions. This includes:
- ATM cash withdrawals at SBI and other bank ATMs.
- Cash withdrawals conducted through the branch channel.
- Cash transactions processed via the Aadhaar Enabled Payment System (AEPS).
Understanding SBI BSBD Accounts
The Basic Savings Bank Deposit account is a key initiative by SBI to promote financial inclusion, particularly among individuals from lower-income backgrounds. These accounts are designed to provide essential banking services without the requirement of maintaining a minimum balance.
Key features of an SBI BSBD account:
- No minimum balance requirement.
- Does not offer a cheque book facility.
- Customers receive a basic RuPay ATM-cum-debit card.
- Withdrawals can be made at branches using a withdrawal form or through ATMs.
It is important to note that customers opening an SBI BSBD account cannot simultaneously hold another savings bank account with the bank. If an existing SBI savings account holder opts for a BSBD account, their previous savings account must be closed within 30 days.
Other Free Services for BSBD Account Holders
Beyond the four free monthly cash withdrawals, SBI continues to offer several services free of charge to BSBD account holders:
- Issuance and annual maintenance of the basic RuPay ATM-cum-debit card.
- Electronic credits through payment channels such as NEFT and RTGS.
- Deposits or collection of cheques issued by central or state governments.
- Activation of an inoperative BSBD account.
However, account holders should be aware that charges may apply for account closure. The revised withdrawal rules necessitate that BSBD account holders closely monitor their monthly cash transactions, especially if they frequently use ATMs, branches, or AEPS services, to avoid unexpected additional charges from October 1, 2026.