If you're an SBI customer and frequently withdraw money from an ATM, this news is important for you. Now, once the free limit is exhausted, withdrawing cash from an ATM will become more expensive, as the bank will charge ₹23 plus GST for each additional transaction. Let us explain the new rules regarding the bank's fees.

The State Bank of India ( SBI ) recently made a major change in the rules and charges for withdrawing money from its ATMs , which has become a matter of concern for many customers. Now, if you exceed the monthly free ATM transaction limit, you will have to pay ₹23 + GST ​​every time, which was less earlier and may seem strange to many. This change has come into effect from December 1, 2025 and the bank has attributed it to the increase in interchange fees, i.e., the charges have been increased due to the expenses incurred by the bank on ATM services.

How many free transactions can you make?

First, it's important to note that the new policy doesn't apply equally to every customer. SBI customers have a set number of free ATM transactions per month, within which they can withdraw money or avail other services without charge. After this limit is exceeded, you'll have to pay ₹23 + GST ​​for each withdrawal. Prior to this new rate, this fee was ₹21 + GST, but has now been increased.

SBI also clarified that there has been no reduction in the number of free transactions, but the fees have been increased to reduce the burden of interbank interchange fees. This means that if you use an ATM more than the free limit per month, the bank will now send you a hefty receipt for each additional withdrawal.

The rule will also apply to other ATMs.

This rule applies not only to SBI's own ATMs but also to those used by other banks, when the number of free transactions exceeds. Previously, many banks prioritized their own ATMs and charged higher fees at other banks' ATMs, but now the rules have become stricter and more expensive for both.

It's important to know about the new ATM charges because people often assume that ATM withdrawals are still always free, but that's not the case. Most banks now offer free transactions for the first few months and apply fees after that. In SBI's case, ₹23 + GST ​​is deducted after the free limit is exceeded, meaning your balance will decrease every time you withdraw personal cash from an ATM.

The reason for the bank's change is said to be the RBI's increase in interchange fees, which directly impacts customers. This means that when banks use another bank's ATM network, they have to pay more than before, and this is why the service fee has been increased. The purpose of implementing this change is to help the bank cover the costs of maintaining its ATM network.

 PC:Times Now Bharat