SBI Savings Account New Rule: Major Update in ATM Withdrawals From October 2026

SBI to Charge ₹15 + GST for Cash Withdrawals Beyond Four Transactions in BSBD Accounts. State Bank of India (SBI) has revised the cash withdrawal charges applicable to its Basic Savings Bank Deposit (BSBD) Accounts. The revised charges will come into effect from 1 October 2026.

Under the revised rule, eligible BSBD account holders will continue to get four free cash withdrawals in a month. If a customer makes more than four cash withdrawals during the same month, a charge of ₹15 plus applicable GST will be levied on each additional withdrawal.

However, an important point to note is that this change does not apply to every SBI savings account. The revised provision specifically relates to BSBD Accounts opened through the branch channel.

What Is the New Rule From 1 October 2026?

From 1 October 2026, the applicable BSBD account holders will have the following withdrawal structure:

• First four cash withdrawals in a month: Free
• Fifth cash withdrawal onwards: ₹15 + GST per transaction
• Digital transactions: Continue to remain free without this four-withdrawal restriction

In simple terms, customers can make four cash withdrawals in a month without attracting the additional charge. Once the four free withdrawals are exhausted, every subsequent cash withdrawal will attract ₹15 + GST.

Which Cash Withdrawals Are Counted?

The four free cash withdrawals are counted across different withdrawal channels.

These include:

1. SBI ATM withdrawals
2. Other-bank ATM withdrawals
3. Cash withdrawals at an SBI branch
4. AEPS cash withdrawal transactions

Therefore, customers should consider withdrawals made through these different channels together when keeping track of their monthly limit.

Example

Suppose a customer makes the following withdrawals during a month:

In this example, the customer has already used the four free cash withdrawals. Therefore, the 5th and 6th cash withdrawals will attract the applicable charge.

Are UPI and Other Digital Transactions Limited to Four?

No. The four-transaction limit relates to cash withdrawals. It should not be understood as a general limit on UPI, internet banking or other digital payment transactions.

Digital transactions will continue to remain free without this particular withdrawal restriction.

Therefore, customers who regularly use digital payment methods should not consider their UPI or online transactions as part of the four free cash withdrawals.

What Is a Basic Savings Bank Deposit (BSBD) Account?

A Basic Savings Bank Deposit (BSBD) Account is a basic savings account designed to provide essential banking facilities, including banking services without the requirement of maintaining a minimum balance.

Some of the features mentioned for SBI's BSBD account include:

1. No minimum balance requirement
2. Basic RuPay ATM-cum-Debit Card issued free of cost
3. No annual maintenance charge for the basic RuPay card
4. Free electronic credits through specified channels such as NEFT/RTGS
5. Four free cash withdrawals every month

Why Should Customers Be Aware of This Change?

The revised rule is particularly relevant for customers who frequently withdraw cash.

A customer may make several small withdrawals during a month without keeping track of the number of transactions. Once the four free withdrawals have been used, every additional cash withdrawal will attract the applicable charge.

Customers can therefore keep track of their monthly cash withdrawals and, wherever convenient, plan their withdrawals more efficiently. Those who regularly use digital payment methods can continue using them without the four-withdrawal restriction.

Key Points at a Glance

Conclusion

The revised SBI rule is important for customers holding eligible Basic Savings Bank Deposit (BSBD) Accounts, especially those who frequently withdraw cash.

From 1 October 2026, the first four cash withdrawals in a month will remain free. Any cash withdrawal beyond these four transactions will attract a charge of ₹15 plus applicable GST per transaction.

At the same time, customers should not misunderstand the change as a general four-transaction limit on all SBI savings accounts or digital payments. The revised provision specifically concerns eligible BSBD accounts and cash withdrawals.

Customers holding such accounts should therefore be aware of the revised charges and keep track of their monthly cash withdrawals to avoid unexpected charges.

Frequently Asked Questions (FAQs)

1. How many cash withdrawals will be free every month?

Eligible SBI BSBD account holders will get four free cash withdrawals per month.

2. What is the charge for the fifth cash withdrawal?

A charge of ₹15 plus applicable GST will be levied on the fifth cash withdrawal and every subsequent cash withdrawal during the month.

3. Does this rule apply to all SBI savings accounts?

No. The revised provision specifically relates to Basic Savings Bank Deposit (BSBD) Accounts opened through the branch channel. It is not a general rule applicable to every SBI savings account.

4. Which transactions are counted as cash withdrawals?

The four free cash withdrawals cover withdrawals through channels such as SBI ATMs, other-bank ATMs, SBI branches and AEPS cash withdrawals.

5. If I withdraw cash five times in a month, will I be charged ₹15 for all five withdrawals?

No. The first four cash withdrawals remain free. The ₹15 + GST charge applies only to the fifth withdrawal and subsequent cash withdrawals.