Banks nowadays are discouraging cash transactions and is encouraging digital mode transaction. As a part of this transition from cash to cashless transaction the banks have incorporated many methods like limiting the amount of ATM withdrawal and reducing the number of free withdrawals etc. State bank of India has also made some changes in their rules of withdrawal.
Rules regarding direct withdrawal from the bank:If the saving account holder maintains a minimum balance of ₹25000 as monthly average balance, the account holder can avail two free cash transaction in a month.If the savings account holder maintains an amount of ₹ 25000 – ₹ 50000 as monthly average balance, the free cash withdrawal limit from the branch is ten times
If the saving account holder maintains an amount of ₹50000 – ₹100000 as monthly average balance, the cash withdrawal limit from the bank is fifteen times.If the monthly average balance is above ₹ 100000, the free cash withdrawal limit from the branch is unlimited.If the withdrawal limit is exceeded then for every transaction ₹50 will be charged.These restrictions are set forth only for withdrawals directly from the bank.
Digital banking does not have any of these restrictions.
ATM withdrawal rules for saving account holders If monthly average balance is upto ₹25000 then the ATM transaction limit is 8 for people in metropolitan cities.Out of these 8, minimum 5 transaction should be from SBI ATM outlet.If monthly average balance is upto ₹25000 then the ATM transaction limit is 10 for people in non metropolitan cities.
Out of these minimum 5 transaction should be from SBI ATM outlet.
If the transaction limit is exceeded then the bank will charge ₹20+GST. If monthly average balance is above ₹25000 then there is no ATM transaction limit.These restrictions are imposed to reduce cash transactions and encourage digital transactions.For more details refer video.