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Withdrawals beyond four will attract a charge of ₹15 plus GST per transaction
Under a notification placed on its website, SBI said that with effect from October 1, customers holding BSBDA accounts opened through the branch banking channel, will also be brought under the revised cash withdrawal framework
State Bank of India (SBI), the country’s largest lender, has expanded the scope of cash withdrawal charges for Basic Savings Bank Deposit Accounts (BSBDA), a move that industry sources say is aimed at plugging a leakage in fee income while simultaneously nudging customers towards digital transactions.Under a notification placed on its website, SBI said that with effect from October 1, customers holding BSBDA accounts opened through the branch banking channel, will also be brought under the revised cash withdrawal framework. While four cash withdrawals in a month, including withdrawals at SBI ATMs, other banks’ ATMs and branch channels will remain free, withdrawals beyond this limit will attract a charge of ₹15 plus GST per transaction.Earlier, a similar charge structure was applicable, primarily to customers who had opened accounts through customer service points (CSPs) or business correspondents (BCs), but not to many customers who had opened BSBDA accounts through the branch banking channel.uniform regimeThe latest revision effectively creates a uniform regime for all BSBDA customers, irrespective of the channel through which the account was opened. Sources said the revised charges will be applicable across customer categories, including senior citizens, signalling the bank’s intention to standardise the treatment of these accounts.Banking analyst said the move is aimed at plugging a gap in fee income recovery from a large base of customers using cash transactions. They noted that maintaining different rules for CSP-opened and branch-opened BSBDA accounts had left a section of customers outside the charge framework, despite generating similar transaction costs for the bank.The decision is also being viewed as part of SBI’s broader effort to encourage digital banking habits and reduce reliance on cash. While cash withdrawals beyond the free threshold will be charged, all digital transactions will continue to remain free and without any restrictions, according to the bank’s notice.minimum balanceBSBDA accounts are designed as no-frills savings accounts and are available to individuals with valid KYC documents. These accounts do not require any minimum balance. Although cheque book facilities are not available, customers can withdraw cash through branch withdrawal forms, or using a basic RuPay ATM-cum-debit card.SBI also reiterated that a customer cannot hold another savings account alongside a BSBDA account, and that any existing savings account must be closed within 30 days of opening a BSBDA account. According to RBI data, banks collectively held 73.04 crore BSBDA accounts with outstanding balances of ₹3.45 lakh crore as of December-end 2025, highlighting the significance of SBI’s latest move for millions of account holders.Published on August 20, 2026
