SBI Revises Cash Withdrawal Charges for Basic Savings Accounts Effective October 2026

State Bank of India has announced a revision to cash withdrawal charges for basic savings bank deposit accounts opened through its branch channel, effective October 1, 2026. While the first four withdrawals each month will remain free, subsequent transactions will incur a fee of ₹15 plus GST, while all digital transactions remain exempt.

State Bank of India (SBI) has announced a revision to its fee structure concerning cash withdrawals from basic savings bank deposit accounts (BSBDA) opened via the branch channel. The updated charges are scheduled to take effect from October 1, 2026, according to a recent notice issued by the bank.

Under the revised guidelines, account holders will continue to receive the first four cash withdrawals in a month free of charge. This exemption covers withdrawals made at both own-bank and other banks' ATMs, as well as transactions conducted directly through branch channels.

However, any cash withdrawals exceeding the four-transaction limit in a given month will attract a charge of ₹15 plus GST per transaction. The bank confirmed that all digital transactions will continue to be exempt from any charges and remain unrestricted.

Basic savings bank deposit accounts are available at all SBI branches to individuals with valid KYC documents. These accounts carry no minimum balance requirement. While they do not include cheque book facilities, account holders can execute withdrawals using withdrawal forms at bank branches or via ATMs utilizing a basic RuPay ATM-cum-debit card.

The bank's guidelines stipulate specific eligibility conditions for these accounts. A customer is not permitted to hold any other savings bank account concurrently with a BSBDA. In cases where an individual already maintains a separate savings account, it must be closed within 30 days of opening the basic savings bank deposit account.

"This structural adjustment by SBI highlights a clear institutional push toward digital-first transactions in the banking sector. By keeping digital channels entirely free while applying a nominal fee to physical cash withdrawals beyond the four-monthly limit, large financial institutions are subtly guiding account holders to adopt digital payments. For businesses and entrepreneurs, this underscores the broader macroeconomic shift toward a cashless economy, making digital transaction infrastructure more critical than ever for daily operations and financial management." — Dr. Shishir Gupta, Founder & CEO, StartupLanes