SBI ATM Transaction Charges: Major Changes in Free Limit and Service Fees for Customers

KKN Gurugram Desk | State Bank of India (SBI), the country’s largest bank, has made significant changes to its ATM transaction fees and free transaction limits. These changes will impact all SBI customers, both in metro and non-metro areas. With the recent updates, customers are now subject to a new set of rules governing ATM transactions, including the number of free transactions allowed and the service charges applied after exceeding those limits.

Let’s dive into the details of the SBI ATM transaction changes and understand how these new rules will affect you.

Changes in Free ATM Transaction Limit

SBI has revised the free ATM transaction limit for its customers, which now includes new guidelines for both SBI ATMs and other bank ATMs.

Under the new rules:

1. Free ATM Transactions at SBI ATMs: All customers, whether they live in metro or non-metro areas, are allowed 10 free ATM transactions every month at SBI ATMs.

2. Free Transactions at Other Bank ATMs:

   • Customers with an average monthly balance (AMB) between ₹25,000 and ₹50,000 will get 5 free transactions at other bank ATMs.

   • Similarly, customers with an AMB between ₹50,000 and ₹1,00,000 will also be entitled to 5 free ATM transactions at other banks.

3. Unlimited Free Transactions for High Balance Accounts:

   • If your account maintains an AMB of ₹1,00,000 or more, you can enjoy unlimited free ATM transactions at both SBI ATMs and other bank ATMs. This means that there will be no transaction limit for those maintaining a high balance.

These changes are aimed at providing better service for SBI’s customers, with more flexibility and convenience for those who maintain higher account balances.

Changes in SBI ATM Transaction Service Charges

Along with changes in the free transaction limits, SBI has also revised its ATM transaction service charges. The key updates to the charges are as follows:

1. Charges After Free Transaction Limit:

   • SBI ATMs: Once you exceed your free transaction limit, SBI will charge ₹15 per transaction + GST for transactions at SBI ATMs, irrespective of the location.

   • Other Bank ATMs: If you use ATMs of other banks, you will be charged ₹21 per transaction + GST after you cross the free limit.

2. Other Services (Balance Inquiry, Mini Statement, etc.):

   • For services such as balance inquiry, mini statement, and similar services, SBI will not charge any fee at SBI ATMs after the free transaction limit has been crossed.

   • However, if you use other bank ATMs, you will be charged ₹10 per transaction + GST for these services.

3. Insufficient Balance Fee:

   • If an ATM transaction fails due to insufficient funds in your account, SBI will impose a penalty fee of ₹20 + GST per failed transaction.

New Fees Effective from May 1, 2025

From May 1, 2025, SBI customers will need to pay ₹23 per transaction for ATM withdrawals after crossing their free monthly limit. This new fee structure will be applicable to both SBI ATMs and other bank ATMs, marking a significant change from the earlier ₹15 and ₹21 fees.

Impact of the Changes on SBI Customers

These changes are likely to affect various segments of SBI’s customer base in different ways:

1. For Metro Area Customers:

   • If you live in a metro area and frequently use SBI ATMs, the 10 free transactions per month will still be beneficial. However, if you exceed the limit, the revised charges of ₹15 per transaction will apply.

   • Metro area customers who use ATMs of other banks for convenience will now incur a charge of ₹21 per transaction once the free limit is crossed.

2. For Non-Metro Area Customers:

   • Non-metro customers will benefit from the 10 free transactions at SBI ATMs and 5 free transactions at other bank ATMs, which is likely to be sufficient for most people in rural or semi-urban areas.

   • The ₹21 per transaction charge for other bank ATMs could be a concern for customers who rely on ATMs from banks other than SBI for withdrawals.

3. High Balance Account Holders:

   • Customers with a high average monthly balance (AMB) of ₹1,00,000 or more will enjoy unlimited free ATM transactions, which will be a significant benefit, especially for those who frequently withdraw cash or use ATMs for other services.

Why is SBI Making These Changes?

The changes in the ATM transaction rules and service charges are likely a part of SBI’s ongoing efforts to improve the customer experience while ensuring that banking costs are kept in check. With the growing adoption of digital banking and the reduction in physical transactions, SBI is making these adjustments to better align with evolving customer needs.

Moreover, these changes also aim to promote the use of SBI ATMs over other banks’ ATMs, thereby ensuring more revenue generation for the bank from its own network of ATMs.

What Can SBI Customers Do to Minimize Charges?

1. Maintain an Optimal Balance:

   • One of the best ways to ensure unlimited free ATM transactions is to maintain an average monthly balance (AMB) of ₹1,00,000 or more. This will allow you to access both SBI and other bank ATMs without any transaction limit or additional charges.

2. Limit ATM Usage at Other Banks:

   • Try to use SBI ATMs whenever possible. By limiting the use of other bank ATMs, you can avoid the ₹21 per transaction fee after crossing the free transaction limit.

3. Monitor Your Transaction Limit:

   • Be mindful of the 10 free ATM transactions you get each month at SBI ATMs and the 5 free transactions at other banks. Exceeding these limits will result in the higher service charges, so it’s crucial to plan your transactions accordingly.

The new rules governing ATM transaction fees and free transaction limits introduced by SBI bring both advantages and challenges for its customers. While customers with high average monthly balances can enjoy unlimited free ATM transactions, others may need to carefully manage their transaction limits to avoid extra charges.

The introduction of ₹15 per transaction at SBI ATMs and ₹21 per transaction at other banks’ ATMs after crossing the free limit marks a significant shift in how SBI is managing its ATM network. SBI is attempting to ensure a more cost-effective and efficient system while balancing the needs of all customers.