SBI to charge BSBD customers after four monthly cash withdrawals from October 1

State Bank of India will levy ₹15 plus GST on each cash withdrawal beyond four free monthly transactions for Basic Savings Bank Deposit Account customers. The policy, effective October 1, 2026, will also cover branch-opened accounts; digital transactions remain free.

— Source published Fri, 21 Aug, 2026, 06:30 IST · First seen Fri, 21 Aug, 2026, 06:36 IST · Source The Hindu BusinessLine

What happened

State Bank of India will charge Basic Savings Bank Deposit Account customers ₹15 plus GST for cash withdrawals beyond four monthly free transactions from

Key facts

  • Four free cash withdrawals per month
  • ₹15 plus GST per withdrawal beyond the free limit
  • October 1, 2026

Why this matters

The move underscores the strategic value of digital-payment partnerships and customer-engagement tools that can reduce cash dependence among financially inclusive banking segments.

What to watch

  • RBI commentary, consumer-protection notices, or revised guidance on charges for Basic Savings Bank Deposit Accounts.
  • SBI clarification on whether banking correspondent, ATM, branch, and AePS withdrawals share the same four-transaction limit.
  • Complaint volumes, social-media backlash, and reports of account closures or dormant-account growth after implementation.
  • Monthly BSBD cash-withdrawal frequency and digital-payment adoption trends in SBI disclosures or sector data.
  • Fee-policy responses from Bank of Baroda, Punjab National Bank, private banks, and regional rural banks.
  • SBI will update customer communications, branch procedures, fee schedules, and transaction-counting systems before the October 1, 2026 effective date.
  • Branches and banking correspondents may encourage BSBD customers to combine withdrawals and adopt UPI, Aadhaar Enabled Payment System, and debit-card transactions.
  • Consumer groups and financial-inclusion advocates may seek details on exemptions, treatment of cash withdrawals at banking correspondents, and whether charges apply uniformly across customer segments.
  • Competing banks may market no-fee or higher-free-withdrawal basic accounts in cash-reliant regions if SBI sees visible customer migration.