After a long gap of 10 years, the State Bank of India (SBI) has revised the rules and usage charges for all its ATM cards. This change is expected to put additional financial pressure on customers’ pockets. The decision comes primarily due to an increase in interchange fees. While SBI had waived or maintained low ATM Withdrawal Charges over the past few years, this sudden hike has caught customers off guard. These changes apply to all types of accounts, including Savings, Current, and Salary accounts.
Revised SBI ATM Charges, Withdrawals, and Transactions
While SBI began restructuring its ATM fee framework in December 2023 and updated it further in 2025, the bank has announced new measures starting in early 2026. Authorities state that rising operational costs have made this step necessary. From now on, exceeding transaction limits or specific card usages will attract higher fees. Although the “Free Transaction Limit” remains the same, the penalty for crossing it has increased.
ATM Withdrawal Limit: How Much Will It Cost to Withdraw Cash?
Savings and Salary account holders can perform 5 free transactions per month at other banks’ ATMs. If this limit is exceeded:
- Financial Transactions (Cash Withdrawal): ₹23 plus GST per transaction (previously ₹21).
- Non-Financial Transactions (Balance Check/Mini Statement): ₹11 plus GST (previously ₹10).
This hike makes it significantly more expensive to use non-SBI ATMs frequently.
Transactions at SBI’s Own ATMs
Previously, many SBI customers enjoyed a high degree of flexibility at their home ATMs. However, under the new rules, Unlimited Free Transactions have been discontinued.
- New Limit: Customers can now perform a maximum of 10 free transactions (totaling financial and non-financial) per month at SBI ATMs.
- Post-Limit Charges: Once the 10-transaction limit is crossed, cash withdrawals will cost ₹23 + GST, and other services (like balance inquiries) will cost ₹11 + GST.
- Coverage: This rule applies across the board—including Metro, Non-Metro, and Rural ATMs.
What Remains Unchanged?
Despite the hikes, some categories remain unaffected by the new SBI ATM Charges:
- BSBD Accounts: Basic Savings Bank Deposit accounts are exempt from these extra charges.
- Cardless Cash Withdrawals: Withdrawing cash without a physical card (via the YONO app/QR code) remains completely free.
- SBI Debit Card Benefits: Certain specific perks for high-end debit cards at SBI’s own ATMs remain intact.
Why Did ATM Transaction Charges Increase?
According to the bank, the “Interchange Fee” for ATM and ADWM (Cash Deposit) machines has risen. To cover these operational costs, the SBI ATM Charges had to be adjusted.
Tips to Avoid Extra Charges:
- Try to use SBI’s own ATMs as much as possible to utilize the 10-free-transaction limit.
- Shift toward UPI and Digital Payments to reduce dependence on cash.
- Keep track of your monthly free limits to avoid the ₹23 penalty.