- SBI changes free cash withdrawal counting from October 1, 2026 for BSBD accounts
- Four free withdrawals remain, but digital and cash withdrawals count together now
- Each withdrawal beyond four costs Rs 15 plus GST, applicable at any ATM or branch
Starting October 1, 2026, State Bank of India is changing how it counts free cash withdrawals.
If you hold a Basic Savings Bank Deposit (BSBD) account, you still get four free withdrawals every month. Nothing changes there. But once you cross that line, every withdrawal after the fourth will cost you Rs 15, plus GST.
However, the real twist is in how the public lender will count the first four free transactions.
Earlier, digital withdrawals didn't count toward your monthly limit. Only cash withdrawals at branches or ATMs did.
Not anymore.
From October 1, SBI is folding digital transactions into that same four-transaction bucket. So, if you withdraw cash twice at an ATM and twice through a digital channel, you've already used up your freebies. Number five, no matter where you make it, comes with a charge.
For instance, if you withdraw cash five-or-six times a month through a mix of ATM visits and app-based withdrawals. Under the old rules, most of that stayed free. Under the new rules, you could easily end up paying for two or three of those transactions. The fee (per transaction) will be Rs 15 plus GST.
The new rule falls under "Product Code 1011-1701", and it applies specifically to the branch channel of Basic Savings Deposit Accounts. Non-financial transactions and fund transfers remain untouched. This is strictly about cash withdrawals.
Notably, BSBD accounts are designed for individuals who don't want to maintain a minimum balance, often first-time bank users, low-income households, or those relying on basic banking access. For them, four transactions can vanish fast, especially with rent, groceries, and daily expenses pulling cash out in small chunks.
SBI hasn't framed this as a big overhaul. On paper, it's a "revision" of service charges. Speaking on the development, CA Kalpana Singh told NDTV, "For someone stretching a tight monthly budget, an extra Rs 15 plus GST, multiplied over a few transactions, adds up quicker than it sounds. Therefore, BSBD account holders should track their transactions to avoid charges."
