SBI Cash Withdrawal Rules Change From October 1: Check Free Limit and Charges for BSBD Accounts

State Bank of India (SBI) customers holding certain basic savings accounts should take note of an important change scheduled to take effect from October 1, 2026. The bank has revised cash withdrawal rules for Basic Savings Bank Deposit (BSBD) accounts opened through SBI branches, with customers potentially facing a fee once they cross the permitted number of free withdrawals in a month.

The change does not apply uniformly to every SBI savings account holder. It is specifically relevant to customers covered under the revised BSBD account rules. Therefore, customers should first check their account category before assuming that the new withdrawal charge applies to them.

Under the revised structure, eligible BSBD customers will continue to receive a limited number of cash withdrawals every month without any additional transaction fee. Charges will apply only after that monthly free limit has been exhausted.

How Many Cash Withdrawals Will Be Free?

According to the details shared by SBI, customers covered by the revised BSBD rules will be allowed four free cash withdrawals per month.

This means that the first four eligible cash withdrawal transactions during a month will not attract an additional withdrawal fee. Once a customer makes more than four withdrawals, however, subsequent cash transactions may become chargeable.

From October 1, the applicable structure is:

• Up to four cash withdrawals per month will remain free.

• After the four free transactions are used, each additional cash withdrawal will attract a ₹15 charge.

• Applicable GST will be added to this fee.

For customers who frequently withdraw small amounts of cash, the change makes it useful to keep track of the number of withdrawals made during the month. Combining cash requirements into fewer withdrawals could help avoid crossing the free transaction limit.

Will SBI Charge Customers for Digital Transactions?

The revised cash withdrawal rules do not mean that SBI customers will have to pay for every type of transaction.

According to the bank's clarification, digital transactions are not affected by this particular change. Customers can continue using eligible digital payment methods without those transactions being counted against the four-withdrawal cash limit.

In practical terms, the new fee is linked to cash withdrawals after the permitted monthly free limit rather than ordinary digital payments.

Customers who regularly make payments digitally may therefore be less affected by the revised cash withdrawal structure.

AePS Cash Withdrawals Will Also Be Treated Differently

Another important part of SBI's revised policy concerns the Aadhaar Enabled Payment System (AePS).

AePS enables customers to carry out certain banking transactions using Aadhaar-based authentication, including cash withdrawal through supported banking points.

Earlier, qualifying AePS transactions were treated differently and were not included in the monthly limit of four free cash withdrawals. SBI has now withdrawn that exemption under the revised rules.

As a result, AePS cash withdrawals will also be considered under the updated cash withdrawal framework. Customers who use AePS regularly should therefore keep this change in mind when monitoring their monthly withdrawal count.

This could be particularly relevant for customers who rely on Aadhaar-enabled banking services instead of conventional ATM or branch-based withdrawal channels.

Who Needs to Pay Attention to the New Rule?

The most important point is that this is not a blanket charge on all SBI customers or every ATM withdrawal.

The revised terms discussed here relate specifically to the applicable Basic Savings Bank Deposit accounts opened through SBI branches. Other SBI account categories may have different withdrawal limits, eligibility conditions and charges.

Customers should check the terms applicable to their particular savings account rather than assuming that the four-withdrawal rule applies to every SBI account.

SBI Has Made Other Banking Changes in Recent Months

The cash withdrawal revision comes after SBI made changes in some other banking products as well.

In August 2026, the bank revised interest rates for certain domestic bulk fixed deposits of ₹3 crore and above. According to the information released by the bank, those revised rates became effective from August 15, 2026.

SBI also reported growth in its financial performance for the first quarter of FY2026-27. For the April-June quarter, the bank reported a net profit of ₹21,121 crore, compared with ₹19,160 crore during the corresponding period of the previous financial year. That represented an increase of around 10.23%.

What SBI BSBD Customers Should Remember From October 1

For customers covered by SBI's revised BSBD rules, the key date is October 1, 2026. Four eligible cash withdrawals in a month will continue to be available without an additional withdrawal charge. After this limit is crossed, each further cash withdrawal will cost ₹15 plus applicable GST.

Digital transactions remain outside this particular cash withdrawal charging structure, while AePS cash withdrawals will now be treated according to the revised withdrawal rules.

Customers who regularly depend on cash should check their account type and monitor the number of withdrawals they make each month. Understanding the applicable free limit in advance can help them avoid unexpected banking charges.