SBI Revises ATM Transaction Rules: How Will It Impact You?

India’s largest lender State Bank of India (SBI) has revised its ATM transaction rules, effective February 1. The move simplifies the fee structure, standardises usage across cities, and promotes digital banking. The changes also cover the number of free ATM transactions available for savings account holders. Both financial and non-financial transactions conducted at SBI and other bank ATMs will be impacted by the changes.

All SBI savings account holders – regardless of where they live or their average monthly balance (AMB) – will get:

• 5 free transactions at SBI ATMs

• 10 free transactions at other bank ATMs per month

If you maintain:

• Rs 25,000 – Rs 50,000 AMB or

• Rs 50,000 – Rs 1,00,000 AMB,

You will still get only 5 free transactions at other bank ATMs.
Customers with AMB above Rs 1 lakh will continue to enjoy unlimited free transactions at all ATMs.

If you go beyond the monthly free transactions, the charges are:

• SBI ATMs: Rs 15 + GST per transaction

• Other bank ATMs: Rs 21 + GST per transaction

From May 1, this charge at any ATM goes up to Rs 23 + GST, following the RBI’s hike in ATM withdrawal fees.

Non-Financial Transactions

• Balance enquiry, mini statement:

  • Free at SBI ATMs (even after limit)

  • Rs 10 + GST at other bank ATMs (after free limit)

• Trust donations and non-cash financial services:

  • Free at SBI ATMs

  • Not available at other bank ATMs

• Failed transactions due to low balance:

  • Penalty stays unchanged at Rs 20 + GST

To avoid incurring additional charges, customers are encouraged to plan their cash withdrawals within the free transaction limits or consider using digital banking alternatives.

While several public sector banks struggle to cover ATM costs, SBI earned Rs 2,043 crore from ATM cash withdrawals over five years. In contrast, nine PSBs together recorded a loss of Rs 3,738.78 crore in the same period.