SBI Updates ATM Withdrawal Charges: New Charges for Savings and Salary Account Customers

SBI Updates ATM Withdrawal Charges: India’s biggest public sector lender, the State Bank of India (SBI), has made changes to its ATM transaction fee structure that will influence a large number of customers throughout the nation.

The updated fees are to be in effect from December 1, 2025, and are part of the bank’s action to counter the increased interchange fees (cost incurred by the banks for using other banks’ ATMs by their customers). This is the first significant change since the fees were revised in February 2025 and has a direct impact on the way you get cash and check your account at the ATMs all over the country.

SBI Updates ATM Withdrawal Charges: Why the Change?

SBI has said the revision was necessary after interchange fees increased, prompting a review of service charges related to ATM and ADWM (Automated Deposit cum Withdrawal Machine) transactions. Simply put, as the costs for ATM networks rise, the bank has adjusted customer fees accordingly.

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What Has Changed for Savings Account Holders?

If you hold a regular SBI savings account (excluding special categories such as Basic Savings Bank Deposit (BSBD) and Kisan Credit Card (KCC) accounts):

You still get five free transactions per month at other banks’ ATMs, this includes both cash withdrawals and non-financial activities like balance checks and mini statements.

Once you exceed those five free transactions, the fee for every subsequent cash withdrawal at another bank’s ATM has increased from ₹21 + GST to ₹23 + GST.

Similarly, charges for non-financial transactions after the free limit have gone up from ₹10 + GST to ₹11 + GST.

Salary Account Holders

The most important change for a large number of clients is the one concerning the SBI salary package accounts:

• At the past, the holders of salary accounts at the bank enjoyed the convenience of unlimited free ATM transactions at other banks, which was a big advantage for those who often used ATMs.
• However, with the new fee structure, the bank has limited the free transactions to 10 per month, comprising both cash and non-financial transactions.
• From this point onward, once you get to the 10 free transactions, the new fees will apply and they are: ₹23 + GST for cash withdrawals and ₹11 + GST for non-financial transactions.

What About Other Account Types?

The revised charges also touch other SBI account categories:

• Current account holders continue with no free transactions at other banks’ ATMs and must pay the updated fees from the first transaction.
• Basic Savings Bank Deposit (BSBD) and Kisan Credit Card (KCC) accounts remain unchanged, meaning existing free limits and charges stay intact for these segments.
• Cardless cash withdrawals at ATMs (where permitted) continue to be free across SBI and other bank ATMs giving customers one charge-free option to access cash.

How Customers Can Avoid or Reduce Charges?

Facing these higher charges, many customers will naturally ask: How can I avoid fees? Here are a few practical tips:

• Use SBI ATMs Whenever Possible: Transactions at your own bank’s ATMs are less likely to attract charges.
• Plan Your Free Transactions: Track how many free transactions you have used in the month and schedule essentials like balance checks accordingly.
• Switch to Digital Alternatives: Wherever possible, use UPI, net-banking, or branch services to lessen the dependency on cash withdrawals.
• Check for Exemptions: No more fees for BSBD and KCC accounts, so if you are eligible they can become very useful cheap options.

SBI’s this move is a sign of movements in whole banking sector ATM transaction costs being revised to match the increasing costs of operations. For the ordinary customers, it will result in a slight but significant alteration in the way they take out money and control their monthly transfers.