ATM Charges Update: SBI Increases Free Transaction Limit, Reduces Customer Fees from February 2025

India’s largest public sector bank, State Bank of India (SBI), has announced major changes to its ATM transaction policy, bringing good news for millions of its customers. Effective February 1, 2025, the bank has increased the number of free ATM transactions and revised its fee structure, aiming to promote digital banking and enhance ATM accessibility across urban and rural areas.

More Free Transactions Every Month for All Customers

As per the new policy, all SBI customers—regardless of whether they reside in metro or non-metro areas—are now entitled to 10 free ATM transactions per month at SBI ATMs and 5 free transactions at other bank ATMs. This is a notable upgrade from the previous limits and is especially beneficial for those maintaining a monthly average balance (MAB) between ₹25,000 and ₹1,00,000.

Customers with an MAB exceeding ₹1,00,000 will enjoy unlimited free ATM transactions, both at SBI and non-SBI ATMs, eliminating withdrawal limits altogether.

Revised Charges Post Free Limit: Lower Fees from SBI ATMs

Once a customer exhausts the monthly free transaction quota, charges will apply as follows:

• ₹15 + GST per transaction at SBI ATMs

• ₹21 + GST per transaction at other bank ATMs

However, customers withdrawing cash beyond the free limit from SBI ATMs in some revised categories may be charged only ₹10 + GST, reflecting the bank’s attempt to make its own services more economical.

RBI to Enforce Additional Fee Hike from May 1, 2025

In addition to SBI’s internal changes, the Reserve Bank of India (RBI) has announced a ₹2 increase in ATM withdrawal fees effective May 1, 2025. This means:

• Charges beyond the free transaction limit will rise from ₹21 to ₹23 per transaction.

• Interchange fees, which banks charge each other, have also been increased from ₹17 to ₹19.

This RBI adjustment will affect all banks, not just SBI, and could gradually influence how banks structure their ATM transaction pricing.