India’s largest public sector bank, State Bank of India (SBI), has revised its ATM transaction charges and increased the free usage limit for its customers. These new rules will come into effect from 1st February 2025.
The bank has made this decision to streamline the fee structure and promote digital banking. These changes will apply to both financial and non-financial transactions at SBI and other bank ATMs.
Unlimited Free Transactions for Customers with ₹1 Lakh Balance
As per the new policy:
- All customers (in metro and non-metro areas) can now do 5 free transactions per month at SBI ATMs and 10 free transactions at other bank ATMs.
- Customers maintaining an average monthly balance (AMB) of ₹25,000 to ₹50,000 will get 5 free transactions per month at other bank ATMs.
- Account holders maintaining an AMB of more than ₹1 lakh will get unlimited free transactions at both SBI and other bank ATMs.
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Charges After Free Limit
Once the monthly free transaction limit is exceeded:
- Each transaction at an SBI ATM will incur a charge of ₹15 + GST, applicable in both metro and non-metro locations.
- At other bank ATMs, the charge will be ₹21 + GST per transaction after the free limit is used.
For balance inquiries and mini statements, SBI ATMs will not charge even after the free limit is crossed. However, at other bank ATMs, these services will cost ₹10 + GST per use after the free limit.
RBI Increases ATM Withdrawal Fee by ₹2, Effective from 1st May
Two weeks ago, the Reserve Bank of India (RBI) announced a hike in ATM withdrawal fees. As per the notification, starting 1st May, customers will have to pay an additional ₹2 per transaction after exceeding the monthly free transaction limit.
Currently, banks charge ₹21 for transactions beyond the free limit. This will increase to ₹23. RBI has also increased the ATM interchange fee by ₹2 — now banks will pay ₹19 per transaction to other banks for providing ATM services, up from the earlier ₹17.
What is ATM Interchange Fee?
The ATM interchange fee is a charge that one bank pays to another for providing ATM services to its customer. This is usually a fixed amount per transaction and is often included as part of the customer’s overall banking costs.