Frequent ATM Cash Withdrawals from SBI Account? Prepare for Higher Charges

SBI implemented new rules for free ATM transaction limits and fees from February 1, 2025. Now, a uniform free limit applies to all State Bank of India customers.

Image of a person using an SBI ATM with a warning sign about increased SBI ATM Charges — ***State Bank of India (SBI) has revised the free limits and fees for ATM transactions. (File Photo)***

If you frequently withdraw cash from ATMs, you need to be cautious now. State Bank of India (SBI) changed the rules for ATM transactions. Exceeding the free transaction limit will directly impact your pocket. Rules effective from February and May 2025 have made ATM use more costly. Today we explain why you should think twice about frequent SBI ATM withdrawals. We will also detail how much the charges have increased.

New ATM Transaction Rules

SBI implemented new rules for free ATM transaction limits and fees from February 1, 2025. This change introduced a consistent free limit for all customers.

Understanding Your Free Transaction Limit

Every customer now gets five free transactions per month at SBI ATMs. They also get ten free transactions at other bank ATMs. This means a total of 15 free transactions are available throughout the month. Customers maintaining an average balance of over ₹1 lakh receive unlimited free transactions. This applies to both SBI and other bank ATMs.

Increased Charges After Free Limit

Exceeding the free transaction limit incurs specific charges. At an SBI ATM, the charge is ₹15 plus GST. At other bank ATMs, customers pay ₹21 plus GST.

Fees for Non-Cash Services

Checking your bank balance or getting a mini-statement is free at SBI ATMs. However, these same services cost ₹10 plus GST at other bank ATMs.

Penalty for Failed Transactions

SBI levies a penalty if an ATM transaction fails due to insufficient funds. This penalty is ₹20 plus GST. This rule remains unchanged and has been in effect earlier.

Impact of RBI’s Fee Hike

The Reserve Bank of India (RBI) decided to increase the ATM interchange fee from May 1, 2025. After the free limit, customers must pay a charge of ₹23 per transaction. Therefore, customers should monitor their free limit. Avoid unnecessary frequent ATM usage. SBI stated these changes promote digital banking.