SBI tightens basic savings account rules from October 1

State Bank of India will enforce revised withdrawal policies for basic savings account holders starting October 1, tightening access to free cash transactions. The key change involves counting Aadhaar-enabled Payment System (AePS) withdrawals against the permitted four free monthly cash transactions, a restriction previously not applied to these digital withdrawals.

Under the new framework, account holders will incur charges of Rs 15 plus applicable Goods and Services Tax for each cash withdrawal—whether through AePS or traditional methods—that exceeds the four-transaction monthly limit. This represents a consolidated approach to managing withdrawal frequency across all transaction channels.

Basic savings accounts, primarily designed for economically weaker sections of the population, have historically offered limited free cash withdrawal privileges. The policy adjustment reflects SBI's effort to manage operational costs while maintaining accessibility for target beneficiaries. Account holders are advised to review their withdrawal patterns ahead of the implementation date to avoid unexpected charges.

The regulation applies uniformly across all SBI branches nationwide, affecting the bank's substantial customer base in basic savings accounts. SBI customers are encouraged to plan their monthly cash requirements strategically to optimise within the revised framework.