By The Sampadak Express
India’s largest public sector bank, the State Bank of India (SBI), has announced a major revision in its ATM transaction rules, effective February 1. The updated policy aims to simplify the fee structure, ensure uniformity across cities, and further push the adoption of digital banking.
Key Highlights of the New ATM Rules
Under the revised guidelines, all SBI savings account holders will receive the same number of free ATM transactions every month—regardless of their location or average monthly balance (AMB).
Revised Free Transaction Limits:
1. SBI ATMs: 5 free transactions per month
2. Other Bank ATMs: 10 free transactions per month
Customers maintaining higher AMBs between Rs 25,000 – Rs 1,00,000 will not receive additional free transactions at other bank ATMs beyond the 10 provided. However, those with an AMB above Rs 1 lakh will continue to enjoy unlimited free transactions across all ATMs.
Charges Post Free Limit
If customers exceed the monthly free transaction limit, the following charges will apply:
1. SBI ATMs: Rs 15 + GST per transaction
2. Other Bank ATMs: Rs 21 + GST per transaction
(Note: From May 1, this charge will increase to Rs 23 + GST, in line with the RBI’s revised ATM fee guidelines.)
Non-Financial Transactions
1. Balance enquiry, mini statement: Free at SBI ATMs, even after exceeding the free limit. Rs 10 + GST at other bank ATMs (after limit)
2. Trust donations & non-cash services: Free at SBI ATMs. Not available at other bank ATMs.
3. Failed transactions due to insufficient balance: Penalty remains unchanged at Rs 20 + GST
Encouraging Digital Banking
With these changes, SBI encourages customers to better manage their ATM usage and explore digital banking options to avoid additional charges.
Earnings & Losses from ATM Transactions
Between 2018 and 2023, SBI earned over Rs 2,043 crore through ATM cash withdrawals. In stark contrast, nine other public sector banks collectively faced a loss of Rs 3,738.78 crore from similar services during the same period, largely due to rising ATM maintenance costs.
