State Bank of India (SBI) has announced changes to the cash withdrawal charges applicable to customers holding a Basic Savings Bank Deposit (BSBD) account. The revised charges will come into effect from October 1, 2026.

The change is particularly important for customers who frequently withdraw cash from their BSBD accounts. Under the revised structure, customers will get a limited number of free cash withdrawal transactions every month.

Four cash withdrawals will remain free

SBI BSBD account holders will be allowed four free cash withdrawal transactions every month.

Once the monthly free limit is exhausted, additional cash withdrawals will attract a charge of ₹15 plus applicable GST per transaction.

The important point is that SBI considers withdrawals through different channels while calculating these transactions.

These can include:

• SBI branch
• ATM
• Micro-ATM
• Aadhaar Enabled Payment System (AePS)
• CASH@POS and other eligible channels

Therefore, customers who regularly withdraw small amounts should keep track of their monthly transactions.

Digital transactions will remain free

The revised cash withdrawal charges don't mean that SBI is charging customers for every transaction.

According to the bank's information, several digital payment methods will continue to remain free under the BSBD account.

These include transactions through:

• UPI
• IMPS
• NEFT
• RTGS
• POS

This means customers who can use digital payment methods for their everyday purchases may be able to avoid additional cash withdrawal charges.

RuPay debit card will remain free

SBI has also retained several existing benefits associated with the BSBD account.

Eligible customers can receive a basic RuPay ATM-cum-debit card without paying an annual maintenance charge.

The account also doesn't require a minimum average balance, making it useful for customers who want a basic banking account without maintaining a fixed amount of money.

No charge for several basic services

Some other services will also remain free for eligible BSBD account holders.

These include depositing or collecting government-issued cheques from the central or state government, activating an inactive account and closing the account.

Customers can also access SBI's digital banking facilities, including YONO and internet banking.

Who can open an SBI BSBD account?

A person who does not already have a BSBD account can generally open one after completing the required KYC formalities.

The account can be opened individually or jointly, subject to SBI's applicable conditions.

One important condition is that customers must inform the bank that they don't already hold a BSBD account with another bank before opening or converting an account into a BSBD account.

No minimum balance requirement

One of the main attractions of an SBI BSBD account is that there is no minimum balance requirement.

The account also doesn't have an upper limit on the balance that can be maintained. SBI provides eligible customers with basic banking and digital banking facilities as part of the account.

Customers can also receive a free 25-leaf cheque book each year, subject to the applicable account terms.

What should SBI customers do?

If you have an SBI BSBD account and frequently use cash, keep track of how many cash withdrawals you make each month. Once the four free transactions have been used, every additional eligible cash withdrawal could attract the revised charge of ₹15 plus GST.

For customers who don't need physical cash regularly, using UPI, NEFT, IMPS or other available digital payment options can help avoid unnecessary cash withdrawal charges.