Starting February 1, 2025, the State Bank of India (SBI) has revised its ATM transaction charges and free usage limits, making cash withdrawals more expensive for customers. The updated fee structure, aligned with the Reserve Bank of India’s (RBI) recent changes, aims to simplify charges and encourage the use of digital banking.
New SBI ATM Rules Effective February 2025
As per the updated policy:
- All SBI savings account holders will get 5 free transactions at SBI ATMs.
- In addition, 10 free transactions will be available at other banks' ATMs.
- These limits apply uniformly across both metro and non-metro areas, ensuring all customers receive the same benefits.
Revised ATM Charges After Free Limit
Once the monthly free transaction limit is crossed:
- Customers will be charged ₹15 + GST per additional transaction at SBI ATMs.
- At other banks' ATMs, the charge will be ₹21 + GST per extra transaction.
- For non-financial services like balance inquiry and mini statements:
- No fee is charged at SBI ATMs.
- At other bank ATMs, a ₹10 + GST charge applies per transaction.
Furthermore, from May 1, 2025, the RBI has raised the interchange fee cap from ₹21 to ₹23 per transaction, contributing to higher transaction costs.
Benefits Based on Average Monthly Balance (AMB)
SBI is offering extra benefits based on account balances:
- Customers maintaining an Average Monthly Balance (AMB) between ₹25,000 and ₹50,000 will get 5 additional free transactions at other bank ATMs.
- Those with an AMB above ₹1,00,000 will enjoy unlimited free transactions at both SBI and non-SBI ATMs.
SBI’s ATM Earnings vs. Public Sector Bank Losses
Over the past five years, SBI has earned ₹2,043 crore from ATM cash withdrawals. In contrast, nine public sector banks (PSBs) have incurred a combined loss of ₹3,738.78 crore from similar services. Among them, only Punjab National Bank and Canara Bank, along with SBI, reported profits from ATM operations.
With the new rules in place, SBI customers will need to manage their monthly ATM usage carefully to avoid higher charges. While higher AMB holders continue to enjoy more flexibility, casual users should be aware of the increased fees that could impact frequent cash withdrawals from ATMs.
