Key Points
- SBI increases interchange fees for ATM and ADWM transactions, passing costs to customers.
- Savings account holders keep 5 free monthly transactions, but cash withdrawal charges rise to ₹23 + GST from ₹21.
- Non-financial transaction fees increase to ₹11 + GST from ₹10 for balance inquiries and mini statements.
- Salary package account holders lose unlimited free transactions, now limited to 10 free transactions per month.
- Basic Savings Bank Deposit accounts remain unaffected, no new charges introduced.
- SBI ATM transactions continue under old rules, no changes for on-us transactions.
India’s largest public sector bank, State Bank of India, has delivered a significant blow to its customers by increasing charges for using ATMs of other banks, making cash withdrawals more expensive for millions of account holders across the country. The revision comes as the bank adjusts its service charges in response to increased interchange fees levied on ATM and ADWM (Automated Deposit cum Withdrawal Machine) transactions, directly impacting those who frequently rely on non-SBI ATMs for their banking needs.
The interchange fee, which is the amount that one bank pays to another for using its ATM network, has been revised upward, prompting SBI to pass this increased cost onto customers through higher transaction charges. This move affects a vast customer base, as SBI operates the largest ATM network in India, but many customers still need to access other banks’ machines, especially when traveling or in areas where SBI ATMs are not readily available.
Impact On Regular Savings Account Holders
For regular savings account holders, SBI has maintained the existing limit of 5 free transactions per month at non-SBI ATMs, providing some relief to occasional users. However, once this free limit is exhausted, customers will now face higher charges for subsequent transactions, with cash withdrawals costing ₹23 plus GST, compared to the previous charge of ₹21.
Non-financial transactions, which include balance inquiries and mini statements, will now attract a charge of ₹11 plus GST, up from the earlier ₹10. While these increases may seem modest on a per-transaction basis, they can accumulate significantly for customers who frequently use other banks’ ATMs, potentially adding hundreds of rupees to their annual banking costs.
Major Setback For Salary Account Holders
The most substantial impact of this policy change falls on salary package account holders, who previously enjoyed the valuable benefit of unlimited free transactions at non-SBI ATMs. This facility has now been completely withdrawn, representing a major reduction in privileges for working professionals across India.
Under the new system, salary account holders will receive a total of 10 free transactions per month, which includes both cash withdrawals and balance inquiries combined. Once this limit is crossed, they will be subject to the same increased charges as regular savings account holders, paying ₹23 plus GST for cash withdrawals and ₹11 plus GST for non-financial transactions. This change is particularly surprising given that salary accounts are typically offered enhanced benefits to attract corporate clients and their employees.
Relief For Basic Savings Bank Deposit Accounts
There is good news for those holding Basic Savings Bank Deposit accounts, which are designed for financially excluded segments of society. No new charges have been introduced for this category, and existing benefits remain unchanged, ensuring that the most vulnerable banking customers are not burdened with additional costs.
Additionally, customers who use their SBI debit cards to transact at SBI ATMs will continue to enjoy the same rules and charges as before, with no changes to the on-us transaction framework. This means that staying within the SBI ATM network remains the most cost-effective option for all account holders.
Strategic Advice For Customers
For customers who frequently use ATMs of other banks, the revised charges necessitate more careful planning of cash withdrawals and banking transactions. Financial experts recommend that SBI customers prioritize using SBI ATMs wherever possible to avoid the new charges entirely.
When using non-SBI ATMs becomes necessary, customers should try to complete their withdrawals within the free transaction limits, planning their cash needs rather than making multiple small withdrawals. Salary account holders, in particular, need to be mindful of the new 10-transaction monthly limit and may need to adjust their banking habits accordingly to avoid unexpected charges on their account statements.
