If you’re someone who frequently withdraws money from ATMs, you should be cautious. The State Bank of India (SBI) has made significant changes to the rules regarding ATM transactions, which will directly impact your monthly expenses. These stricter rules, which came into effect in February and May 2025, have made ATM use significantly more expensive. Therefore, if you have an account with SBI, the country’s largest bank, it’s crucial to understand the increased charges for frequent ATM withdrawals and the additional fees you may incur. This change is a major step towards promoting digital banking.
SBI’s New ATM Free Limit
Effective February 1, 2025, SBI has implemented new and stricter rules regarding the free limit and fees for ATM transactions. Under these rules, the same free limit applies to most customers. Under these new rules, each customer now has access to five free transactions at SBI ATMs per month. Additionally, customers receive 10 free transactions at other bank ATMs. This allows them to make a total of 15 free transactions per month.
However, an unprecedented discount is also offered to customers. If a customer maintains an average monthly balance of more than ₹1 lakh in their account, they receive unlimited free transactions at both SBI and other ATMs. This feature encourages customers to maintain more funds in their accounts.
Fees for Exceeding the Free Limit and RBI Intervention
If you exceed your monthly free transaction limit, you will be charged a separate fee for each additional transaction, which, combined with GST, will be a significant burden on your pocket. Cash withdrawals from SBI ATMs after exceeding the free limit cost ₹15 + GST per transaction. If you use an ATM from another bank, this fee increases to ₹21 + GST per transaction.
From May 1, 2025, the RBI has decided to increase ATM interchange fees (the fee charged by one bank to another bank’s customers). Following this increase, customers will be charged ₹23 per transaction after the free limit is exhausted, making ATM usage more expensive.
Non-Cash Transactions and Penalty Rules
Charges apply not only to cash withdrawals from ATMs, but also to other services and failed transactions. Services like balance checks and mini statements are free at SBI ATMs. However, the same services at other bank ATMs attract a ₹10 + GST fee.
The most stringent rule is that if an ATM transaction fails due to insufficient funds in your account, SBI imposes a hefty penalty of ₹20 + GST. This rule is already in effect and strongly advises customers to always check their balance before making withdrawals.
Given all these changes, customers should pay close attention to their free limits and avoid frequent ATM use unless necessary. The primary purpose of these fees is to significantly promote digital transactions such as UPI, QR code payments, and online banking, so that people can reduce their reliance on cash.
