New Delhi: Come October, the State Bank of India (SBI) is set to implement a significant change in withdrawal rules.
India’s largest public sector and commercial bank has revised its cash withdrawal charges for customers holding Basic Savings Bank Deposit (BSBD) accounts opened through the branch channel.
A BSBD account is a basic bank account which provides essential banking facilities without the need for customers to maintain a minimum balance.
According to an SBI public notice, customers will continue to get four free cash withdrawals in a month. However, additional cash withdrawals in the same month will attract a charge of Rs 15 plus 18% GST per transaction.
“State Bank of India has revised the cash withdrawal charges, effective October 1, 2026, for basic savings bank deposit (BSBD) accounts opened through branch channel. Four cash withdrawals in a month will continue to be free and cash withdrawal transactions beyond four in a month will attract a charge of Rs 15 + GST per transaction. Customers are requested to take note that all digital transactions will continue to be free without any restriction,” the SBI notice stated.
This will affect customers who frequently withdraw cash from their BSBD accounts through cheques, withdrawal slips or from ATMs.
If a customer makes five cash withdrawals in a month, the first four will not attract any charge. When he withdraws cash for the fifth time in the same month, his account will be debited Rs 15 plus GST fee.
In case a customer makes six cash withdrawals in a month, the charge will apply to the fifth and sixth transactions.
Keeping track of the number of withdrawals, thus, becomes critical for those customers if they want to avoid the additional charge.
SBI has clarified that its revised cash withdrawal rule will not affect digital transactions. All online transactions will continue to remain free without any restriction.
Hence, those account holders who use UPI, internet banking or other digital payment methods to make payments won’t face the new charge because the cash withdrawal restriction won’t apply to them.
