State Bank of India (SBI) will revise its cash-withdrawal rules for customers holding Basic Savings Bank Deposit (BSBD) accounts from October 1, 2026. The key change is that customers will continue to receive four free cash withdrawals each month, but withdrawals beyond that limit will attract a charge of ₹15 plus applicable GST per transaction. (moneycontrol.com)
The revision is important because SBI is also changing what counts toward the four-free-withdrawal limit. Aadhaar Enabled Payment System (AePS) cash withdrawals, which were previously excluded from the monthly calculation, will now be counted. At the same time, SBI has clarified that digital transactions will continue to remain free without a transaction limit. (business-standard.com)
SBI’s New Cash Withdrawal Rules From October 1
The revised rules apply specifically to SBI’s Basic Savings Bank Deposit accounts operated through the branch channel. The BSBD account is designed as a basic banking product, particularly for customers who want essential banking services without a minimum-balance requirement.
From October 1, the first four cash withdrawals in a month will remain free. Beginning with the fifth cash withdrawal, SBI will charge ₹15 plus GST for every additional transaction. (moneycontrol.com)
New SBI BSBD Withdrawal Rules
| Rule | From October 1, 2026 |
|---|---|
| Free cash withdrawals per month | 4 |
| Charge from 5th withdrawal | ₹15 + GST |
| ATM cash withdrawals | Counted |
| Branch cash withdrawals | Counted |
| AePS cash withdrawals | Counted |
| Digital transactions | Free |
| Minimum balance requirement | No minimum balance |
| Effective date | October 1, 2026 |
The change means customers who frequently use cash will need to monitor the number of withdrawals they make during each month.
What Has Changed From the Earlier Rule?
The biggest change is not the four-withdrawal limit itself. SBI already provided four free withdrawals for BSBD accounts.
The important change is how the bank calculates those four transactions.
Under the earlier framework, digital transactions were excluded when calculating the limit. The revised framework removes the earlier exclusion for certain cash-withdrawal channels, particularly AePS transactions. (business-standard.com)
This means customers who withdraw cash through an Aadhaar-enabled banking service will now use up one of their four monthly free cash withdrawals.
Old vs New Rules
| Feature | Earlier Rule | From Oct. 1, 2026 |
|---|---|---|
| Free cash withdrawals | 4 per month | 4 per month |
| Cash withdrawals beyond limit | ₹15 + GST | ₹15 + GST |
| AePS cash withdrawals | Excluded from limit | Included |
| ATM cash withdrawals | Included | Included |
| Branch cash withdrawals | Included | Included |
| Digital transactions | Excluded | Remain free |
| Core change | Certain digital/AePS exclusions | Broader counting of cash withdrawals |
SBI’s revised schedule therefore represents a change in the counting mechanism rather than a reduction in the headline four-withdrawal allowance.
₹15 Charge Applies From the Fifth Withdrawal
For BSBD customers, the financial impact begins with the fifth cash withdrawal in a calendar month.
For example, if a customer makes four eligible cash withdrawals during October, all four remain free. A fifth withdrawal would attract ₹15 plus GST. Every additional eligible cash withdrawal after that would incur the same charge.
Example of Monthly Charges
| Cash Withdrawals in a Month | Free Withdrawals | Chargeable Withdrawals | Base Charges |
|---|---|---|---|
| 1 | 1 | 0 | ₹0 |
| 2 | 2 | 0 | ₹0 |
| 4 | 4 | 0 | ₹0 |
| 5 | 4 | 1 | ₹15 + GST |
| 6 | 4 | 2 | ₹30 + GST |
| 8 | 4 | 4 | ₹60 + GST |
| 10 | 4 | 6 | ₹90 + GST |
The actual amount debited will be higher than the base charge because applicable GST is added to the ₹15 fee.
Which Cash Withdrawals Count?
The revised rules cover cash withdrawals through multiple channels.
These include ATM cash withdrawals, branch withdrawals and AePS-based cash withdrawals. The purpose is to treat different forms of physical cash access within the same monthly allowance. (business-standard.com)
Cash Channels Covered
| Withdrawal Channel | Counts Toward 4-Free Limit? |
|---|---|
| SBI ATM | Yes |
| Other-bank ATM | Yes |
| SBI branch | Yes |
| AePS | Yes |
| Other eligible cash-withdrawal channels | Depending on SBI’s applicable schedule |
| UPI/NEFT/RTGS | No cash withdrawal; digital transactions remain free |
This is particularly relevant for customers in areas where AePS is commonly used to access bank accounts through business correspondents and assisted banking points.
Digital Transactions Remain Free
One important point for customers is that the revised rule does not impose a fee on ordinary digital transactions.
SBI has stated that digital transactions will continue to be free without restriction. (livemint.com)
That means customers can continue using digital payment and transfer methods without using up their four monthly cash-withdrawal transactions.
Cash vs Digital Banking
| Transaction Type | Impact From Oct. 1 |
|---|---|
| ATM cash withdrawal | Counts toward 4-free limit |
| Branch cash withdrawal | Counts toward 4-free limit |
| AePS cash withdrawal | Counts toward 4-free limit |
| UPI payments | Free |
| NEFT | Free |
| RTGS | Free |
| Other digital transactions | Continue to be free |
The distinction is important because customers who shift routine payments to digital channels can reduce the number of cash withdrawals they need.
What Is an SBI BSBD Account?
The Basic Savings Bank Deposit account is intended to provide essential banking services with minimal financial barriers.
A major feature is the absence of a minimum balance requirement. The account also provides basic banking facilities, including cash withdrawals and a RuPay ATM-cum-debit card. (livemint.com)
The product is particularly relevant to customers who maintain relatively simple banking relationships and use their accounts primarily for receiving money, making basic payments and withdrawing cash.
Key BSBD Features
| Feature | BSBD Account |
|---|---|
| Minimum balance | No minimum balance |
| Free cash withdrawals | 4 per month |
| Additional cash withdrawal | ₹15 + GST |
| Basic debit card | RuPay ATM-cum-debit card |
| Digital transactions | Free |
| Target segment | Basic banking/financial inclusion |
Because BSBD accounts are designed for basic banking, the revised cash-withdrawal rules could disproportionately affect customers who depend heavily on physical cash.
Why SBI Is Revising the Rules
The revised fee structure is part of SBI’s broader service-charge framework.
Banks generally differentiate between digital and physical banking because cash transactions involve additional infrastructure, including ATMs, branches, cash handling, security and processing.
SBI has previously revised its ATM transaction charges for standard savings accounts. Its published schedule currently provides different free-transaction limits depending on the account and ATM used, with charges applying after the applicable free limit. (sbi.co.in)
The BSBD revision is therefore separate from the standard savings-account ATM fee structure.
This Change Does Not Affect Every SBI Customer
A major point of clarification is that the October 1 change is specifically related to BSBD accounts.
Customers holding regular SBI savings accounts should not interpret the announcement as a universal ₹15 cash-withdrawal charge on every SBI account.
SBI’s standard savings-account ATM charges operate under a separate schedule, with free withdrawal limits and fees determined by account characteristics and the ATM being used. (sbi.co.in)
Who Needs to Pay Attention?
| SBI Customer Type | Relevance of Oct. 1 Change |
|---|---|
| BSBD account holders | High |
| Regular savings account holders | Separate ATM rules apply |
| Current account holders | Separate fee schedule |
| Customers using only digital payments | Low direct impact |
| Customers frequently withdrawing cash | High impact |
| AePS users with BSBD accounts | High impact |
This distinction should prevent confusion among SBI’s wider customer base.
AePS Users Face the Biggest Practical Change
The inclusion of AePS withdrawals in the four-free-transaction count is likely to be the most noticeable change for customers who use Aadhaar-enabled banking services.
AePS allows customers to perform banking transactions through authorized service points using Aadhaar authentication. It is particularly useful in areas where customers may have limited access to conventional branches or ATMs.
Under the revised rule, an AePS cash withdrawal will consume one of the four monthly free cash withdrawals.
For customers who use AePS several times a month, this could mean reaching the chargeable threshold more quickly.
Customers Can Reduce Charges by Planning Withdrawals
The simplest way for BSBD customers to avoid additional charges is to reduce the number of cash-withdrawal transactions.
Instead of making multiple small withdrawals, customers who need cash regularly can plan withdrawals within the four-free-transaction allowance, subject to their own cash needs and security considerations.
Using digital payments for everyday purchases can also reduce the need to withdraw cash.
How Customers Can Avoid Extra Charges
- Keep track of cash withdrawals during each month.
- Remember that AePS withdrawals now count toward the limit.
- Use digital payments where practical.
- Avoid unnecessary small cash withdrawals.
- Check account-specific charges before using an ATM or branch.
- Monitor SBI notifications and account statements for fee deductions.
The objective is not to eliminate cash usage but to avoid unexpected charges once the monthly allowance is exhausted.
The Bigger Picture
SBI’s October 1 revision is a targeted change for Basic Savings Bank Deposit accounts rather than a blanket increase in cash-withdrawal charges for all SBI customers. BSBD holders will continue to receive four free cash withdrawals each month, but every eligible cash withdrawal after the fourth will cost ₹15 plus GST. The major change is that AePS cash withdrawals will now count toward the four-transaction allowance. (business-standard.com)
The change also highlights SBI’s broader shift toward digital banking. While physical cash withdrawals are subject to the monthly allowance, SBI says digital transactions will remain free without restriction. For customers who can use UPI and other digital payment methods for everyday transactions, the impact of the revised cash-withdrawal rule can therefore be limited.
Looking Ahead
From October 1, BSBD account holders will need to pay closer attention to the number of cash withdrawals they make each month. The four-free-transaction limit remains unchanged, but the inclusion of AePS withdrawals means customers who rely on Aadhaar-enabled cash services may reach the limit sooner than before. The ₹15-plus-GST charge will apply from the fifth eligible cash withdrawal onward.
For SBI customers generally, the most important takeaway is to distinguish the BSBD rule from the bank’s separate ATM fee schedule for regular savings and current accounts. Customers who primarily use digital payments are unlikely to see a major impact, while frequent cash users should plan withdrawals carefully. SBI’s revised framework ultimately reinforces the growing difference in cost between repeated physical cash transactions and digital banking.
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