SBI Cash Withdrawal Rules: Cash withdrawal rules are changing from October 1; Charge will be levied after 4 transactions, know the new rule

The country’s largest public sector bank, State Bank of India (SBI), has made major amendments in the rules related to service charges and cash withdrawal for crores of its customers. According to the official information issued by the bank, these new rules will be effective from October 1. This change will have a direct impact on the Basic Savings Bank Deposit (BSBD) i.e. zero balance account holders of the bank. The bank has clarified that customers will have to pay service charges on additional cash withdrawal after the free limit is exhausted in the month.

What will change from October 1? Understand the new fee structure

Under the bank’s revised rules, the first 4 cash withdrawals per month for BSBD account holders will be completely free. But as soon as a customer withdraws cash more than four times in a calendar month, ₹15 and additional GST applicable thereon will be deducted on each cash withdrawal transaction from the fifth and onwards.

This fee will be equally applicable on branch counter withdrawals, cash withdrawals from ATMs of SBI and other banks and cash transactions done through Aadhaar Enabled Payment System (AePS).

There will be no restrictions on digital transactions

SBI has clarified that despite tightening the cash withdrawal rules, digital banking services have been given complete relief. All types of digital transfers done through UPI, Internet Banking, Mobile Banking, NEFT and RTGS will be completely free. There is no monthly limit imposed on the number of digital transactions. The aim of the bank is to motivate customers to adopt cashless and digital payments as much as possible.

Which account holders will be directly affected by this?

This new amendment will mainly apply to Basic Savings Bank Deposit Account (BSBD). This account is usually opened without any minimum balance requirement to promote financial inclusion.

For Regular Savings Bank Account (General Savings Account) holders, the rules related to ATM and branch will remain the same as per their existing category and metro and non-metro cities. However, BSBD account holders will now have to plan their cash expenses for the month in advance, so that they can avoid extra charges.

What should customers do to avoid additional charges?

• Use of digital mode: Make online payments for daily purchases and bill payments with UPI or RuPay Debit Card.

• Lump sum withdrawal: Instead of withdrawing small amounts repeatedly, withdraw a larger amount as per requirement at the beginning of the month at one go so that the limit of 4 free transactions is not exceeded.

• Mini Statement and Balance Check: To check balance or view statement, instead of ATM, use the bank’s WhatsApp banking, SMS or YONO app.