SBI revises BSBD cash withdrawal charges to ₹15 per transaction from Oct 1
Synopsis
SBI is tightening the terms on its zero-balance BSBD accounts from 1 October — charging ₹15 plus GST on every cash withdrawal beyond the four free monthly transactions, and scrapping the AePS exemption that previously gave rural customers extra leeway. For millions of low-income account holders who rely on business correspondents, the change could quietly erode what was effectively a free banking lifeline.
Key Takeaways
SBI will charge ₹15 plus GST per cash withdrawal beyond the four free monthly transactions on BSBD accounts, effective 1 October .
The changes apply to BSBD accounts opened through the branch channel .
All digital transactions remain free with no monthly cap.
The AePS exclusion from the free transaction count has been removed — AePS withdrawals will now count toward the monthly free limit.
SBI posted a net profit of ₹21,121 crore in Q1 FY27 , up 10.23% year-on-year.
The bank's stock traded at ₹1,048.05 on BSE on Thursday, up 0.2% .
State Bank of India (SBI) has revised cash withdrawal charges for Basic Savings Bank Deposit (BSBD) accounts opened through the branch channel, with the new fee structure taking effect from 1 October. The country's largest lender announced the changes in a public notice on Thursday, 20 August.
Key Changes to BSBD Accounts
Under the revised rules, BSBD account holders will continue to receive four free cash withdrawals per month. Any cash withdrawal beyond this free limit will attract a charge of ₹15 plus applicable GST per transaction. Importantly, all digital transactions will remain free with no restrictions, the bank confirmed.
A significant structural change concerns Aadhaar Enabled Payment System (AePS) transactions. Previously, AePS transactions were excluded from the count of four free monthly transactions. Under the revised framework, this exclusion has been removed — meaning AePS transactions will now be counted toward the monthly free limit alongside other withdrawal modes.
What This Means for Account Holders
BSBD accounts are typically held by low-income and rural customers, many of whom rely on AePS for cash access through business correspondents. The removal of the AePS exclusion could effectively reduce the number of free branch-equivalent withdrawals available to these customers each month, depending on their transaction mix. Customers who shift entirely to digital channels will face no additional cost.
This comes amid a broader industry trend of banks rationalising zero-balance account services as financial inclusion targets mature. Notably, SBI's BSBD revision is the first such change to the fee structure in recent years for this category of accounts.
SBI's Financial Performance
The revision was announced alongside the bank's strong Q1 FY27 earnings. SBI reported a 10.23% year-on-year rise in net profit to ₹21,121 crore for the April–June 2025 quarter, up from ₹19,160 crore in Q1 FY26, according to its stock exchange filing.
Operating profit grew 9.8% to ₹33,529 crore, while net interest income (NII) rose 14.9% to ₹46,992 crore, driven by strong loan expansion and a sharp decline in bad loan provisions.
SBI Stock Performance
Shares of SBI traded broadly flat on Thursday at ₹1,048.05 on the BSE, up a marginal 0.2%. The stock has touched a 52-week high of ₹1,234.80 and a 52-week low of ₹798.60, according to exchange data.
With the October deadline approaching, BSBD account holders — particularly those in rural areas dependent on AePS — should review their monthly transaction patterns to avoid unexpected charges.
Point of View
Even if the ₹15 headline fee grabs attention. AePS was designed as the last-mile banking tool for rural India — exempting it from transaction limits was a deliberate policy choice to protect financial inclusion. Rolling that back, even quietly, signals that SBI is beginning to treat BSBD accounts as a cost centre rather than a public good. With over 700 million Jan Dhan-linked accounts in the system, any fee rationalisation at this scale deserves regulatory scrutiny, not just a public notice on X.
NationPress
20 Aug 2026
Frequently Asked Questions
What are the new SBI BSBD cash withdrawal charges from October 2025?
From 1 October, SBI will charge ₹15 plus applicable GST for every cash withdrawal beyond four free transactions per month on Basic Savings Bank Deposit (BSBD) accounts opened through the branch channel. Digital transactions remain free with no limit.
What is a BSBD account and who holds one?
A Basic Savings Bank Deposit (BSBD) account is a zero-balance savings account offered by banks under Reserve Bank of India (RBI) guidelines, primarily targeting low-income and rural customers. SBI is the country's largest issuer of such accounts, many of which are linked to the Jan Dhan Yojana scheme.
How does the AePS change affect BSBD account holders?
Previously, Aadhaar Enabled Payment System (AePS) transactions were excluded from the count of four free monthly cash withdrawals. Under the revised rules effective 1 October, this exclusion has been removed, meaning AePS transactions will now count toward the monthly free limit. This could reduce the effective number of free withdrawals for rural customers who use AePS via business correspondents.
Will digital transactions on BSBD accounts attract any charges?
No. SBI has confirmed that all digital transactions on BSBD accounts will continue to remain free without any restriction, regardless of frequency.
How did SBI perform financially in Q1 FY27?
SBI reported a net profit of ₹21,121 crore in Q1 FY27 (April–June 2025), a 10.23% increase year-on-year. Net interest income rose 14.9% to ₹46,992 crore and operating profit grew 9.8% to ₹33,529 crore, driven by loan growth and lower bad loan provisions.
