State Bank of India (SBI) is set to introduce changes to certain cash withdrawal and ATM transaction rules from October 1, 2026. However, the change does not mean that every SBI customer will be charged for withdrawing money from an ATM.
According to SBI’s official service-charge information, changes taking effect from October 1 apply to specific account categories, including Basic Savings Bank Deposit (BSBD) accounts and salary-package accounts using other banks’ ATMs/Automated Deposit and Withdrawal Machines (ADWMs).
BSBD Account Holders: Four Cash Withdrawals Free
Customers with SBI’s Basic Savings Bank Deposit Account (BSBD) will continue to receive a specified number of free cash withdrawals each month.
From October 1, 2026, the first four cash withdrawals in a month will remain free under the revised BSBD branch-channel charges. After the free limit is exhausted, an additional charge will apply to subsequent cash withdrawals.
Reports based on SBI’s revised charges state that the charge for cash withdrawals beyond the four-transaction limit will be ₹15 plus applicable GST per transaction.
This means customers who frequently withdraw small amounts of cash may want to keep track of the number of withdrawals made during the month.
Is Every SBI ATM Withdrawal Going to Cost Money?
No. The October 1 change should not be interpreted as a blanket ATM charge for all SBI customers.
SBI’s official service-charge page specifically lists a revision for Basic Savings Deposit Account – Branch Channel effective October 1, 2026, while a separate revision concerns free monthly transactions at other-bank ATMs/ADWMs for salary-package account holders.
Therefore, the exact impact depends on the type of SBI account held by the customer and the channel used for the transaction.
Salary Account Holders Also Need to Check the New Limit
SBI has separately announced a revision in the number of free monthly transactions at other-bank ATMs and ADWMs for salary-package account holders, effective October 1, 2026.
According to reports on the revised rule, the free monthly limit for certain SBI salary-package customers using other-bank ATMs is being reduced from 10 transactions to 5 transactions. The limit includes financial and non-financial transactions.
Customers who regularly use another bank’s ATM should therefore check their specific salary-account variant and applicable SBI charges.
What About Digital Transactions?
The revised cash-withdrawal rules are different from digital payment transactions. The reported BSBD change concerns cash withdrawals, while digital banking services continue to provide an alternative for customers who do not need physical cash.
Using UPI, internet banking or mobile banking can help customers avoid unnecessary ATM visits, although individual transaction rules and limits can vary by service.
Customers Should Check Their Account Type
The most important point is that not every SBI account holder will suddenly start paying an ATM withdrawal fee from October 1.
Before withdrawing cash, customers should identify whether they have:
- A regular SBI savings account
- A Basic Savings Bank Deposit (BSBD) account
- An SBI salary-package account
- Another specialized SBI account
They should also check whether the transaction is being made at an SBI ATM or another bank’s ATM, because applicable free limits and charges can differ.
SBI’s official website currently lists the revised service-charge notices and identifies October 1, 2026 as the effective date for the relevant BSBD and salary-package changes.
Bottom Line
The headline that “ATM withdrawals will be charged from October 1” is too broad. The changes announced by SBI primarily affect specific account categories and transactions beyond applicable free limits. BSBD account holders will continue to get four free cash withdrawals per month, with ₹15 plus GST applicable to additional cash withdrawals under the revised branch-channel rule. Certain salary-package customers will also see changes in their free other-bank ATM/ADWM transaction limits.
SBI customers should therefore check their account type and the bank’s latest service-charge schedule before assuming that every ATM withdrawal will attract a fee.