Bank Customers Big Alert: Cash Withdrawal Rules to Change from October 1

The State Bank of India (SBI), one of India’s largest public sector banks, has announced an important change for its customers. Starting October 1, 2026, new cash withdrawal rules will come into effect for Basic Savings Bank Deposit (BSBD) account holders.

Four Free Cash Withdrawals Per Month:

Until now, BSBD account holders could withdraw cash without any charges. However, under the new rules, customers will be allowed only four free cash withdrawal transactions per month. Once this limit is exceeded, every additional cash withdrawal will attract a charge of Rs 15 plus applicable GST.

No Charges on Digital Transactions:

While the new restriction applies to cash withdrawals, digital transactions will continue to remain free. Customers can continue using UPI, NEFT, RTGS, and IMPS without any additional charges, according to reports.

The revised cash withdrawal charges will apply to SBI Basic Savings Bank Deposit (BSBD) accounts opened through bank branches. Since customers are entitled to four free cash withdrawals every month, the change is unlikely to affect most account holders. However, those who frequently withdraw cash may end up paying additional banking charges.

What Is a Basic Savings Bank Deposit (BSBD) Account?

An SBI Basic Savings Bank Deposit (BSBD) account is a zero-balance savings account, meaning customers are not required to maintain a minimum balance. The account also comes with an ATM/debit card, and no annual fee is charged for the debit card, according to reports.

Customers who rely heavily on cash transactions are advised to keep these new rules in mind before they come into effect on October 1, 2026.