SBI basic savings account rules change from October 1: What changes

SBI will count AePS withdrawals in the four free monthly cash transactions, with Rs 15 plus GST charged on each withdrawal beyond the limit

State Bank of India (SBI) will charge Rs 15 plus GST for every cash withdrawal beyond four transactions a month from its Basic Savings Bank Deposit (BSBD) accounts from October 1, 2026. The change matters for customers who rely on cash and use Aadhaar-enabled payment services to withdraw money.

 

The first four cash withdrawals in a month will continue to be free. However, SBI is changing how these four free transactions are counted. Earlier, Aadhaar Enabled Payment System (AePS) transactions were excluded from the monthly limit. From October 1, they will also be counted.

 

The bank has clarified that digital transactions will remain free without any limit.

 

What is changing from October 1?

 

According to SBI’s revised rules, BSBD account holders will get four free cash withdrawals every month. Once this limit is crossed, each additional cash withdrawal will attract a charge of Rs 15 plus applicable GST.

 

The four transactions will cover cash withdrawals through different channels, including:

 

SBI and other bank ATMs

 

Cash withdrawals at SBI branches

 

AePS cash withdrawal transactions

 

This is a change from the existing structure, under which AePS transactions were not counted towards the four-transaction limit.

 

For example, if a customer makes three ATM or branch cash withdrawals and then uses AePS to withdraw cash, all four will count towards the monthly free limit under the revised rules. A fifth cash withdrawal would attract Rs 15 plus GST.

 

Digital payments remain free

 

The change does not mean that SBI BSBD customers will have to pay for digital banking transactions.

 

SBI said digital transactions will continue to remain free without any restriction. This includes electronic methods of moving money, meaning customers who can use digital channels for payments and transfers can avoid the additional cash withdrawal charges.

 

For customers who frequently withdraw cash, however, the revised treatment of AePS could make the four-transaction limit easier to reach.

 

Why BSBD accounts are different

 

BSBD accounts are designed primarily to promote financial inclusion by allowing customers to maintain a savings account without a minimum balance requirement.

 

SBI's basic savings account comes with a free RuPay ATM-cum-debit card, with no annual maintenance charge. Customers can also receive money through electronic payment channels such as NEFT and RTGS without charges.

 

The account is intended to provide basic banking facilities without the cost structure associated with some regular savings accounts.

 

There is, however, an important condition. A customer holding an SBI BSBD account cannot simultaneously maintain another SBI savings bank account. If an existing savings account is held, it generally needs to be closed within 30 days of opening the BSBD account.

 

What should customers watch?

 

The immediate impact will depend on how frequently an account holder needs physical cash.

 

For someone who primarily uses UPI, cards or other digital payment methods, the revised rule may have little practical impact because digital transactions remain free.

 

For customers who depend heavily on cash withdrawals, the change could increase their monthly banking costs. This is particularly relevant because AePS transactions, which can be useful for accessing cash through Aadhaar authentication, will now count towards the four free withdrawals.

 

Customers should therefore keep track of their cash withdrawals across channels rather than treating ATM, branch and AePS withdrawals as separate limits.

 

What remains free under the BSBD account?

 

Despite the revised cash withdrawal rule, several basic facilities remain available without charges. These include the free RuPay debit card and electronic receipt of funds through NEFT and RTGS.

 

The account also continues to offer the key benefit of no minimum balance requirement, which is one of its main attractions for customers seeking a low-cost banking account.

 

The October 1 change is therefore less about introducing a charge on the account itself and more about tightening the definition of transactions that count towards the monthly cash withdrawal allowance.

 

For BSBD customers, the takeaway is clear: Four cash withdrawals a month remain free, but AePS withdrawals will now be included in that count. Digital transactions, meanwhile, will continue to remain free. If cash is used regularly, keeping withdrawals within the four-transaction limit will help avoid the Rs 15-plus-GST charge on each additional transaction.