Key Points:
- SBI Revises ATM Rules: Starting May 1, 2025, ATM withdrawal fees will rise to ₹23 per transaction after exceeding free limits, up from ₹21.
- Free Transaction Limits: Customers get five free transactions at SBI ATMs and ten at other bank ATMs monthly, with variations based on average monthly balance (AMB).
- Non-Financial Transactions: Balance inquiries and mini statements remain free at SBI ATMs but will cost ₹10 + GST at other bank ATMs after the free limit.
- Impact of RBI Guidelines: The Reserve Bank of India (RBI) has allowed banks to increase ATM withdrawal fees to cover rising operational costs.
New Delhi: The State Bank of India (SBI), the country’s largest public sector bank, has announced significant changes to its ATM withdrawal rules, which will take effect from May 1, 2025. These revisions include higher charges for transactions exceeding the free monthly limit and updated free transaction limits based on customers’ average monthly balance (AMB). The changes align with the Reserve Bank of India’s (RBI) recent guidelines to increase ATM fees.
“What’s Changing for SBI Customers?”
Increased ATM Charges
Under the new rules, SBI customers will pay ₹23 per transaction (excluding GST) after exhausting their free monthly transaction limit. This is a ₹2 increase from the current fee of ₹21. The hike applies to both financial and non-financial transactions at ATMs of other banks.
Revised Free Transaction Limits
SBI has updated its free transaction policy:
- All Customers: Five free transactions at SBI ATMs and ten at other bank ATMs per month.
- AMB Between ₹25,000 and ₹50,000: Additional five free transactions at other bank ATMs.
- AMB Between ₹50,000 and ₹1 Lakh: Another five extra free transactions at other bank ATMs.
- AMB Above ₹1 Lakh: Unlimited free transactions at both SBI and other bank ATMs.
These limits aim to provide flexibility while encouraging higher account balances.
“Non-Financial Transactions and Penalties”
For non-financial services such as balance inquiries or mini statements:
- At SBI ATMs: Free of charge even after exceeding the limit.
- At Other Bank ATMs: ₹10 + GST per transaction beyond the free limit.
If a transaction fails due to insufficient funds in the account, customers will continue to pay a penalty of ₹20 + GST, unchanged from previous rules.
“Why Are ATM Fees Increasing?”
The RBI recently approved a hike in ATM interchange fees—the cost banks pay each other for providing ATM services. Effective May 1, 2025:
- The maximum fee for cash withdrawals has increased to ₹23 per transaction.
- Non-financial transactions now cost up to ₹7 per transaction.
The RBI justified the increase by citing rising operational costs for cash management, ATM maintenance, and security. Banks are passing these costs on to customers while encouraging digital banking alternatives like UPI and mobile wallets.
“How Will This Impact Customers?”
These changes mean frequent ATM users must plan their withdrawals carefully to avoid extra charges. For instance:
- In metro cities, customers are entitled to three free transactions at other bank ATMs.
- In non-metro areas, this limit extends to five.
Customers with higher AMBs can benefit from additional or unlimited free transactions, making it advantageous to maintain a larger balance in their accounts.
“SBI’s Profits from ATM Withdrawals”
SBI has consistently reported significant revenue from ATM withdrawal charges. In FY24 alone, the bank earned over ₹2,043 crore from such fees. This contrasts with several public sector banks that have faced losses due to high operational costs associated with maintaining ATMs.
“What Should Customers Do?”
To minimize charges:
- Use SBI ATMs for withdrawals whenever possible.
- Opt for digital banking methods like UPI or internet banking for non-cash transactions.
- Maintain a higher AMB to qualify for additional or unlimited free transactions.
SEO Headlines:
- “SBI Hikes ATM Withdrawal Fees: What You Need to Know Before May 2025”
- “ATM Rules Change for SBI Customers: Higher Fees and Updated Free Limits”
- “RBI Approves Fee Hike: How SBI’s New ATM Policies Will Impact You”
- “Plan Your Withdrawals! SBI Revises Free Transaction Limits and Charges”
- “Why SBI Customers Will Pay More for ATM Withdrawals After May 2025”
With these changes coming into effect soon, it’s crucial for customers to stay informed and adapt their banking habits accordingly. The revisions reflect broader trends in India’s banking sector as institutions balance operational costs with customer convenience.
