SBI raises ATM transaction fees after a year: What changes for customers

India's largest lender introduces a 10-transaction cap for salary account holders and raised fees for exceeding free limits, responding to increased inter-bank processing costs

State Bank of India (SBI) has increased its ATM transaction charges after nearly a year, attributing the decision to higher interchange fees paid by banks when customers use another company’s automated teller machines.

 

SBI’s new charges became effective in December and will impact savings and salary account customers who rely on other banks’ ATMs once they cross their free transaction limits.

 

Why SBI has revised ATM charges

 

SBI has said ATM and Automated Deposit cum Withdrawal Machine (ADWM) service charges were last revised on February 1, 2025. Since then, an upward revision in interchange fees has increased the cost of providing ATM services. The bank has now reassessed and updated its charges to reflect this higher cost base.

 

The revised charges apply only after customers exhaust their free monthly transactions.

 

What changes for savings account customers

 

There is no change in the number of free transactions available to SBI savings account customers at other banks’ ATMs. Customers can still make:

 

Five free transactions per month at non-SBI ATMs (including both financial and non-financial transactions)

 

However, charges after the free limit have gone up:

 

• Cash withdrawals beyond the free limit now cost Rs 23 plus GST, up from Rs 21 plus GST 
• Non-financial transactions, such as balance enquiries, now cost Rs 11 plus GST, up from Rs 10 plus GST

 

Higher impact on salary account holders

 

The revision is more significant for SBI salary package savings account holders. Earlier, these customers enjoyed unlimited free transactions at non-SBI ATMs. From December 1, 2025:

 

• Free transactions at non-SBI ATMs are capped at 10 per month (financial and non-financial combined) 
• Cash withdrawals beyond this limit will be charged at Rs 23 plus GST 
• Non-financial transactions beyond the free limit will attract a charge of Rs 11 plus GST

 

This change could increase monthly banking costs for salaried customers who frequently use other banks’ ATMs.

 

Who remains unaffected

Several categories of customers and transactions are not impacted by the latest revision:

 

• Basic Saving Bank Deposit (BSBD) accounts: No change in existing ATM service charges 
• SBI debit card holders using SBI ATMs: Charges remain unchanged 
• Cardless cash withdrawals at SBI ATMs: These transactions will continue to be unlimited and free until further notice

 

What customers should do

 

Customers who frequently exceed their free ATM limits may need to reassess their cash withdrawal habits. Using SBI ATMs instead of other banks’ machines, planning fewer and higher-value withdrawals, and relying more on digital payments could help limit additional charges.

 

For salary account holders in particular, tracking monthly ATM usage will be important, as the shift from unlimited to capped free transactions marks a clear change in cost structure.

 

Overall, while the fee hike is modest per transaction, repeated usage beyond free limits could add up over time, especially for customers dependent on non-SBI ATMs.