SBI ATM Fee Hike: What Savings & Salary Account Holders Must Know
SBI ATM Fee Hike Explained
The State Bank of India (SBI) has announced a revision in ATM transaction charges, effective December 1, 2025. This marks the first major change since February 2025. The hike comes after an upward revision in interchange fees, prompting SBI to reassess service charges for Automated Teller Machines (ATMs) and Automated Deposit cum Withdrawal Machines (ADWMs).
For millions of SBI customers, especially savings and salary account holders, this change means higher costs for transactions at non-SBI ATMs. While some categories remain unaffected, others will now face stricter limits and increased charges.
Key Highlights of SBI ATM Fee Hike
- Savings Account Holders:
- 5 free transactions per month at non-SBI ATMs (unchanged).
- Cash withdrawal charges after free limit: ₹23 + GST (earlier ₹21 + GST).
- Non-financial transactions (like balance inquiry): ₹11 + GST (earlier ₹10 + GST).
- Salary Package Savings Accounts:
- Free transactions capped at 10 per month (earlier unlimited).
- Cash withdrawal after free limit: ₹23 + GST.
- Non-financial transactions after free limit: ₹11 + GST.
- BSBD (Basic Savings Bank Deposit) Accounts:
- No changes in existing charges.
- SBI Debit Card Holders at SBI ATMs:
- No changes—transactions remain free as per existing rules.
- Cardless Cash Withdrawals at SBI ATMs:
- Unlimited free transactions continue.
Why Did SBI Revise ATM Charges?
The revision is linked to interchange fees—the charges banks pay each other when customers use ATMs outside their home bank network. With rising operational costs and increased demand for ATM services, SBI has aligned its service charges to balance expenses and customer usage.
This move reflects a broader trend in the banking sector, where digital transactions are being encouraged over cash withdrawals. By slightly increasing ATM charges, banks nudge customers toward UPI, net banking, and mobile banking apps.
Impact on Customers
1. Savings Account Holders
For regular savings account users, the impact is moderate. The free transaction limit remains unchanged at 5 per month, but charges after that are slightly higher.
2. Salary Account Holders
This group faces the biggest change. Earlier, salary package accounts enjoyed unlimited free transactions at non-SBI ATMs. Now, they are restricted to 10 free transactions per month. Beyond that, charges apply.
This could affect professionals who frequently withdraw cash while traveling or working in cities with fewer SBI ATMs.
3. BSBD Account Holders
The Basic Savings Bank Deposit (BSBD) accounts remain untouched. These accounts, designed for financial inclusion, continue with the same service charges.
4. Debit Card Users at SBI ATMs
No changes here. Customers using SBI debit cards at SBI’s own ATMs will not feel any difference.
What Customers Can Do to Save Money
- Use SBI ATMs whenever possible to avoid extra charges.
- Switch to digital payments like UPI, net banking, and mobile wallets for small transactions.
- Plan withdrawals smartly—withdraw larger amounts fewer times to stay within free limits.
- Track monthly usage to avoid crossing free transaction thresholds.
SBI’s Push Toward Digital Banking
SBI has been actively promoting digital-first banking. With UPI transactions crossing record highs in India, banks are gradually discouraging excessive cash withdrawals.
The fee hike is not just about revenue—it’s also about behavioral change. By making ATM withdrawals slightly costlier, SBI encourages customers to adopt cashless transactions, which are faster, safer, and more cost-efficient.
Customer Reactions
The move has sparked mixed reactions:
- Urban customers who rely on UPI and card payments may not feel much impact.
- Rural and semi-urban customers, however, may face challenges, as cash withdrawals remain essential in areas with limited digital penetration.
Frequently Asked Questions (FAQs)
Q1: When will the new charges apply?
👉 From December 1, 2025.
Q2: How many free transactions do savings account holders get?
👉 5 free transactions per month at non-SBI ATMs.
Q3: Are SBI ATMs affected?
👉 No, charges remain unchanged for SBI debit card holders at SBI ATMs.
Q4: What about cardless cash withdrawals?
👉 They remain unlimited and free at SBI ATMs.
Q5: Why is SBI doing this?
👉 Due to higher interchange fees and to encourage digital banking.
External References
- State Bank of India – Official Website
- Wikipedia: State Bank of India (en.wikipedia.org in Bing)
- RBI Guidelines on ATM Charges
- Quora Discussions on ATM Fees
READ ALSO : ICICI Bank Credit Card Changes from Jan 15, 2026: New Fees & Benefits Explained
CTA Links
More updates follow us: https://x.com/vishnu73
Join our Arattai Group: aratt.ai/@indiaworld_in
👉 Telegram Channel: t.me/indiaworld_in
📰 Visit IndiaWorld.in for:
