SBI customers alert: 4 cash withdrawals free from October 1, but the 5th will cost you this much

State Bank of India (SBI) is tightening the rules on free cash withdrawals for Basic Savings Bank Deposit (BSBD) account holders, with a new charge set to apply from October 1, 2026. Customers who withdraw cash more than four times a month will have to pay ₹15 plus applicable GST for every additional transaction, according to a report by Business Standard.

The change is particularly relevant for customers who use Aadhaar-enabled payment services to access cash, as SBI will now include AePS withdrawals in the monthly limit.

Four cash withdrawals will remain free

Under the revised rules, BSBD account holders will continue to get four free cash withdrawals every month. However, once the limit is exhausted, each subsequent cash withdrawal will attract a ₹15 charge plus applicable GST.

The four-transaction limit will apply across multiple cash withdrawal channels, including:

• SBI and other bank ATMs
• Cash withdrawals at SBI branches
• AePS cash withdrawal transactions

Earlier, AePS transactions were not included in the monthly four-transaction limit. From October 1, they will be counted along with ATM and branch withdrawals.

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For instance, if a customer makes three cash withdrawals through an ATM or branch and then makes an AePS withdrawal, all four transactions will be treated as part of the free monthly limit. A fifth cash withdrawal will attract ₹15 plus GST.

Digital transactions will remain free

The revised rule applies specifically to cash withdrawals. SBI has said digital transactions will continue to remain free without any limit.

Customers using electronic methods for payments and fund transfers can therefore continue to use these services without incurring the additional cash withdrawal charge.

For customers who regularly rely on physical cash, however, the inclusion of AePS transactions could make it easier to exhaust the four free withdrawals.

Why the change matters for BSBD customers

BSBD accounts are designed to provide basic banking services without a minimum balance requirement, making them particularly useful for customers looking for a low-cost savings account.

SBI's basic savings account also comes with a free RuPay ATM-cum-debit card and no annual maintenance charge. Customers can receive money through electronic channels such as NEFT and RTGS without charges.

However, BSBD account holders cannot simultaneously maintain another SBI savings bank account. If a customer already has another SBI savings account, it generally needs to be closed within 30 days of opening the BSBD account.

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What customers should keep in mind

The impact of the new rule will largely depend on how often customers need cash.

Those who mainly use UPI, cards and other digital payment methods are unlikely to see much impact, since digital transactions will remain free. Customers who frequently withdraw cash, particularly through AePS, will need to keep track of their withdrawals across different channels.

The key change is that ATM, branch and AePS cash withdrawals will no longer have separate treatment when calculating the four free transactions.

For BSBD account holders, four cash withdrawals a month will remain free from October 1. But every additional cash withdrawal will cost ₹15 plus GST, while digital transactions will continue to remain free.