SBI ATM Rules – If you’re an SBI customer, here’s an important update for you. Starting from February first, twenty twenty-five, the State Bank of India has rolled out a new set of rules for using ATMs. These changes affect how many free transactions you get every month and what charges apply if you go over that limit.
The goal behind this update is to simplify ATM usage, encourage digital banking, and make the rules consistent across metro and non-metro areas. Whether you’re doing a balance check or taking out cash, these changes could affect your monthly bank routine. Let’s take a closer look.
What Are the New Free ATM Limits
Earlier, the number of free ATM transactions you got depended on whether you lived in a metro city or a smaller town and how much money you usually had in your account. Now, SBI has made things more uniform.
Here’s how it works now:
Every savings account holder, no matter where they live, gets five free transactions at SBI ATMs and ten free transactions at other bank ATMs each month.
For people who maintain an average monthly balance of between twenty-five thousand and fifty thousand rupees, the number of free transactions at other bank ATMs has been brought down to five. This also applies to those who keep a balance between fifty thousand and one lakh.
If you have more than one lakh rupees as your average monthly balance, you are in luck. You will continue to get unlimited free ATM transactions, whether at SBI ATMs or those of other banks.
So now, the number of free transactions you get is mainly linked to your account balance rather than your location. This change is meant to give all customers a more consistent and predictable experience.
What Happens After You Use Up the Free Transactions
Once you cross your free transaction limit, the charges kick in. These charges depend on whether the ATM belongs to SBI or another bank.
If you use an SBI ATM after the free limit, you will be charged fifteen rupees plus tax for every transaction.
But if you go to an ATM of another bank, the charge will be higher. You’ll have to pay twenty-one rupees plus tax per transaction.
This applies to both cash withdrawals and other financial services like fund transfers.
Non-Financial Transactions Also Count
Non-financial transactions include things like checking your balance, printing a mini statement, or changing your ATM PIN.
At SBI ATMs, these are still free even after you’ve used your free quota. But if you do these non-financial activities at other banks’ ATMs and have crossed the limit, you will be charged ten rupees plus tax per transaction.
So if you are in the habit of frequently checking your balance at an ATM, it might be better to switch to mobile or internet banking to avoid extra charges.
Charges for Special Financial Services
Some non-cash financial services like trust donations or fund transfers are free of charge at SBI ATMs. These types of services are not available to SBI customers at other bank ATMs.
So if you are making any donation or similar transaction, it is best to use an SBI ATM to avoid any issues.
Penalty for Failed Transactions Due to Low Balance
If you try to withdraw money from an ATM but your account does not have enough funds, your transaction will fail. In such cases, SBI charges a penalty. The good news is, this charge has not changed.
You will still be charged twenty rupees plus tax for every failed ATM transaction due to insufficient balance. This applies to both SBI and non-SBI ATMs.
So always make sure your account has enough money before trying to withdraw to avoid unnecessary penalties.
ATM Withdrawal Fee to Increase from May 2025
There is more. Starting from May first, twenty twenty-five, the maximum fee you could be charged for an ATM withdrawal after your free limits will go up. This change has been announced by the Reserve Bank of India.
The maximum fee per transaction will increase from twenty-one rupees to twenty-three rupees. This applies to transactions at any ATM once you have crossed your monthly free quota.
So if you are someone who uses cash often, this increase might impact your monthly budget a bit.
What This Means for You
These new rules are designed to streamline ATM usage and reduce the differences between customers living in metro cities and those in smaller towns. If you keep a high balance in your account, the impact may be minimal for you. But for others, especially those who use ATMs frequently, it is important to be aware of these changes.
Here are a few tips to avoid charges:
- Try using digital banking or mobile apps for tasks like balance checks
- Plan your cash withdrawals in advance so you don’t go over your free limit
- Monitor your average monthly balance if you want to increase your free transaction quota
SBI’s new ATM rules are part of a broader effort to promote digital banking and reduce the load on ATMs. While the changes may seem a bit confusing at first, once you understand how many free transactions you are allowed and what charges apply, it becomes easier to manage your banking habits.
Make sure you check your monthly usage and switch to online banking whenever possible. It could save you both time and money in the long run.
