New Charges on Cash Withdrawals from October 1
State Bank of India (SBI) is set to implement new charges for cash withdrawals made by its Basic Savings Bank Deposit (BSBD) account holders. Starting October 1, 2026, customers who exceed four cash withdrawals in a calendar month will incur a fee of ₹15 plus applicable Goods and Services Tax (GST) for each subsequent transaction.
This revised policy aims to streamline banking operations and encourage digital transactions, though it marks a significant change for individuals heavily reliant on physical cash.
What Counts Towards the Four-Transaction Limit?
The updated rules expand what counts towards the monthly four-transaction limit. Previously, certain channels might have been treated separately, but now, the limit encompasses all cash withdrawals across multiple platforms. These include:
- Cash withdrawals made at SBI ATMs.
- Cash withdrawals from ATMs of other banks.
- Cash withdrawals conducted at SBI branch counters.
- Cash withdrawals processed via Aadhaar-enabled Payment Services (AePS).
A key change is the inclusion of AePS transactions, which were not previously counted towards this limit. This means that a customer making three ATM withdrawals and then one AePS withdrawal in a month will have exhausted their four free transactions. Any fifth cash withdrawal, regardless of the channel, will then trigger the ₹15 + GST charge.
Digital Transactions Remain Free
While cash withdrawals face new restrictions, SBI has confirmed that all digital transactions will continue to be free and without any monthly limit. This includes electronic methods for payments and fund transfers such such as Unified Payments Interface (UPI), debit card payments, National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS).
This aspect of the policy encourages customers to transition towards digital banking solutions for their everyday financial needs, offering an unrestricted alternative to physical cash.
Understanding BSBD Accounts
BSBD accounts are designed to provide essential banking services to a broad segment of the population, particularly those who might not meet minimum balance requirements for standard savings accounts. Key features of these accounts include:
- No minimum balance requirement.
- Provision of a free RuPay ATM-cum-debit card.
- No annual maintenance charges for the debit card.
- Free receipt of money through electronic channels like NEFT and RTGS.
It is important for BSBD account holders to note that they cannot simultaneously maintain any other savings bank account with SBI. If a customer already holds another SBI savings account, it typically needs to be closed within 30 days of opening a BSBD account.
Impact on Customers
The impact of this new rule will largely depend on individual banking habits. Customers who frequently use digital payment methods like UPI or cards for transactions are unlikely to be significantly affected. However, those who regularly rely on cash, especially individuals who primarily use AePS services for withdrawals, will need to closely monitor their monthly transactions across all channels to avoid incurring additional fees.
“Customers who frequently withdraw cash, particularly through AePS, will need to keep track of their withdrawals across different channels,” an expert noted, emphasizing the need for awareness among BSBD account holders.
The integration of all cash withdrawal channels under a single four-transaction limit marks a shift in how BSBD account holders will manage their physical cash needs.