New ATM charges from October 2026, and how to stop paying for your own cash
SBI has cut free ATM transactions for some accounts from 1 October 2026. Here is what changed, what each extra withdrawal costs, and simple ways to avoid the fees.
Several money rules changed on 1 October 2026, and ATM charges are the one most people will notice. The biggest change reported is at SBI, India's largest bank. Here is what it means, and how to avoid paying to take out your own money.
What changed at SBI
As reported by several outlets:
- Salary package accounts: free transactions at other banks' ATMs drop from 10 to 5 a month, at all centres. Both cash withdrawals and non-cash transactions such as balance checks count. After that, each cash withdrawal costs ₹23 plus GST.
- Basic Savings Bank Deposit (BSBD) accounts: still 4 free cash withdrawals a month, then ₹15 plus GST for each extra one.
Other banks set their own free limits, usually within the RBI's framework, and many of them have revised charges over the last year too. Your bank's schedule of charges, on its website, is the place to check.
Small fees, big total
₹23 plus GST is about ₹27. Three extra withdrawals a month is around ₹80, or close to ₹1,000 a year, for nothing. Balance checks at another bank's ATM can use up your free count without you noticing.
Seven ways to stop paying ATM fees
- Use your own bank's ATM where you can. Own-bank limits are usually more generous.
- Never check your balance at an ATM. Your banking app, SMS banking or a missed call service does it for free and doesn't count against your limit.
- Withdraw less often, in larger amounts. Plan the week's cash in one trip instead of three.
- Pay by UPI or card where it is accepted. Person-to-person UPI payments stay free.
- Try cash withdrawal at a shop. Some stores give cash back at the counter on a card payment.
- Know your free count. Write down your bank's monthly limit for own and other ATMs.
- Track every withdrawal. You can't avoid fees you don't notice.
Cash is not an expense (until you spend it)
Taking ₹5,000 out of the ATM doesn't mean you spent ₹5,000. You moved it from the bank to your wallet. Many apps count withdrawals as spending, which inflates your totals and hides where the money really went.
In the Dhuddu Android app, an ATM withdrawal can be recorded as a transfer, from your bank account to cash, and kept out of spending. When you spend the cash, you add what you bought. If you import your bank statement, on the app or the website, Dhuddu spots ATM and cash withdrawals and marks them as transfers for you. The ATM fee itself, when your bank charges one, is a real expense: tag it Bank charges and you'll see what the year cost you.
Sources: Upstox, Outlook Money, DNA India. Charges are as reported at the time of writing; confirm with your bank's current schedule of charges.