The country's largest public sector bank, State Bank of India (SBI), is set to revise its cash withdrawal rules starting October 1, 2026. SBI has modified the service charges for customers holding Basic Savings Bank Deposit (BSBD) accounts. Under the new rules, the first four cash withdrawals in a month will remain free. For any subsequent cash withdrawals (the fifth or higher), a charge of ₹15 plus GST will apply per transaction. A key aspect of this change is that digital transactions will no longer be excluded from the count of the four free transactions; in other words, the treatment of digital transactions—which were previously outside this limit—has changed under the new rules.

Previously, while a charge of ₹15 plus GST applied to transactions exceeding the initial four free ones, digital transactions were not included in that count. SBI's revised rules have now eliminated this exclusion for digital transactions.

What is a BSBD account?
The BSBD account is designed for individuals who wish to access banking services without incurring high charges. It does not require the maintenance of a minimum balance, making it highly beneficial for low-income customers. This account does not offer a chequebook facility; customers can withdraw money via ATMs or by using a withdrawal form at a bank branch. SBI also provides a basic RuPay ATM-cum-debit card with this account.

A key condition for opening the account
To open an SBI BSBD account, the customer must not hold any other savings account. If a savings account already exists, it must be closed within 30 days of opening the BSBD account.

Which facilities are free?
The basic RuPay debit card provided with the BSBD account is free of charge and carries no annual maintenance fee. No charges are levied on funds credited to the account via electronic modes such as NEFT and RTGS. Facilities for depositing or collecting Central or State Government cheques are also free. Additionally, there is no fee for reactivating an account that has remained inactive for a long period. However, you may have to pay a charge for closing the account.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.