From October 2026, SBI will charge basic savings account holders Rs15 plus GST for each cash withdrawal beyond the four free monthly branch transactions, signalling a new era of fee adjustments for small account holders.
State Bank of India will tighten the rules on cash withdrawals for a subset of basic savings customers from 1 October 2026, adding a charge when branch transactions go beyond the monthly free allowance. According to the bank’s revised service charges page, the change applies to Basic Savings Bank Deposit accounts and is aimed specifically at cash withdrawals made through the branch channel, not at ordinary minimum-balance requirements or broader account access.
Under the new structure, customers will still get four free cash withdrawals at a branch each month. After that, SBI will levy Rs15 plus goods and services tax on each additional branch withdrawal. In practical terms, a customer making six branch withdrawals in a month would pay the fee on the fifth and sixth transactions, while the first four remain free. The bank says the affected account continues to operate as a zero-minimum-balance product.
The move is the latest in a series of fee adjustments by India’s largest lender. SBI already increased charges on non-SBI ATM and automated deposit-cum-withdrawal machine transactions from 1 December 2025, citing higher interchange costs and operating expenses, according to reports in Goodreturns, The Week, Angel One and Moneycontrol. Those changes did not affect transactions at SBI-owned ATMs.
For BSBD customers who rely on branch withdrawals for day-to-day spending, the revised rule could matter more than it first appears. People who receive salaries, pensions or government benefits into these accounts may need to keep closer track of how often they withdraw cash during a month. SBI says customers can reduce the risk of extra charges by consolidating withdrawals where possible and checking their transaction history through statements, alerts or passbook entries before the new fee takes effect.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
