Major Change in SEBI ATM Transaction Rules: Know More

There have been a few speculations that the government is rewarding taxpayers through fresh ATM guidelines, but this is not true. The new announcement made by SBI, dated February 1, 2025, is an internal policy of the bank and has nothing to do with any reward system offered by the government to taxpayers.

The new rules govern all SBI customers, with or without taxpayer status, and are for both financial and non-financial transactions at SBI and other banks’ ATMs. The new updates seek to standardise limit usage and promote digital banking rather than providing benefits to taxpayers.

Starting February 1, 2025, the State Bank of India (SBI) has updated its free ATM transaction limits for savings account holders. As per the revised policy, all customers, regardless of their average monthly balance (AMB) or location—metro or non-metro—will now get 5 free transactions at SBI ATMs and 10 free transactions at other bank ATMs each month.

For customers maintaining an average monthly balance (AMB) between Rs. 25,000 and Rs. 50,000, free transactions at other bank ATMs are now standardised to 5 per month. The same rule applies to those with balances between Rs. 50,000 and Rs. 100,000. In addition, account holders with an AMB of more than Rs. 100,000 will still get unlimited free transactions at SBI and other bank ATMs. This change is intended to simplify the ATM usage pattern and provide a uniform experience to customers everywhere.

The State Bank of India (SBI) will revise its service charges for savings account holders who exceed the allowed number of free ATM transactions per month. The charges will differ based on the type of transaction—whether financial (like cash withdrawals) or non-financial (like balance inquiries)—and also on whether the transaction is done at an SBI ATM or an ATM of another bank.

After the free ATM transaction limit for the month is exhausted, SBI will charge Rs. 15 + GST per transaction on SBI ATMs, no matter where you are. Standard charges for other bank ATMs are higher at Rs. 21+ GST per transaction in all locations, including metropolitan areas.

For non-financial transactions such as balance enquiries, mini statements, and similar services, SBI will not charge any fee even after the free limit if these are done at SBI ATMs. However, if such transactions are performed at other banks’ ATMs beyond the free limit, a charge of Rs. 10 + GST per transaction will apply.

For non-cash financial transactions like trust donations, SBI does not charge any fee when these are done at SBI ATMs. However, these services are not available at other banks’ ATMs for SBI customers.

In case of an ATM transaction getting rejected because of a low balance in your savings account, SBI will still levy a penalty of Rs. 20 + GST on each failed transaction. The charge is the same as it was under the earlier policy.

The Reserve Bank of India (RBI) has changed the maximum ATM withdrawal fee, such as ATM withdrawal charges, to Rs. 23 per transaction, effective from May 1, 2025. This comes after the fee of the Shared ATM network was raised, which is levied by banks on other banks for allowing customers of other banks to access their ATMs

Starting May 1, 2025, SBI customers will face a higher ATM withdrawal fee of Rs. 23 per transaction after exceeding their monthly free limit, up from the earlier charge of Rs. 21. This increase is in line with the recent directive from the Reserve Bank of India (RBI).