New Delhi: The State Bank of India (SBI) is one of the country’s largest banks and is operated by the Government of India. People place a great deal of trust in opening accounts with SBI; not only is money safe there, but customers also enjoy various other benefits. For this reason, SBI frequently updates its rules for account holders.
SBI has issued an alert for its account holders regarding significant changes to its rules. The bank announced that customers may now incur charges if they withdraw cash from a branch more than four times. In short, customers will have to pay extra for exceeding four transactions. However, under the new policy, the first four transactions remain free.
Charges to apply after four transactions
This new change by SBI is significant for account holders. Under the revised policy, only the first four cash withdrawals made at an SBI branch are free. A fee will be charged starting from the fifth transaction. These revised SBI rules will come into effect on October 1, 2026.
According to an ET report, SBI has clarified that these changes will not apply to all account holders; the new rules specifically apply to ‘Basic Bank Deposit’ accounts. If you hold this type of account, you can make only four free cash withdrawals from a bank branch per month; any withdrawals beyond this limit will attract a charge.
What were the previous SBI rules?
According to the official SBI website, four monthly withdrawals were previously free, but this limit encompassed transactions across various channels—including SBI ATMs, other banks’ ATMs, branch withdrawals, and micro-ATMs. Digital payment methods such as UPI, NEFT, RTGS, and IMPS were exempt from this limit. Under the new changes, the exemption for the first four free monthly transactions applies specifically to cash withdrawals made through the branch channel. Find out whether charges apply for ATM withdrawals.
However, this does not mean that you will incur charges on the very first transaction when withdrawing money from an ATM using this account. The new regulations do not alter the existing rules regarding withdrawals from SBI ATMs, other banks’ ATMs, bank branches, or micro-ATMs; the bank’s previous policies will continue to apply to these transactions.
What are the applicable charges?
Once SBI’s new rule comes into effect on October 1, 2026, a charge of ₹15 per transaction plus GST will be levied on cash withdrawals exceeding the limit of four free transactions. It is worth noting that basic savings accounts are primarily designed for the underprivileged sections of society, encouraging them to start saving without the burden of fees or charges.
Furthermore, there is no requirement to maintain a minimum balance in this account. However, the account does not offer a chequebook facility; account holders can only make withdrawals using withdrawal forms at bank branches or via ATMs. A basic RuPay ATM-cum-debit card is also issued to account holders.
