State Bank of India (SBI), the largest public sector bank in India, earned ₹331 crore in revenue from ATM cash withdrawals in the financial year 2023-24. On the other hand, other public sector banks collectively incurred a net loss of ₹925 crore in ATM transactions, as seen in a Finance Ministry reply in the Lok Sabha.
SBI's Profits on ATM Transactions Through Five Years
From 2019-20 to 2023-24, SBI earned ₹2,043 crore from ATM cash withdrawal charges. Nine other public sector banks lost a total of ₹3,738.78 crore during this period. Among them, only Canara Bank and Punjab National Bank were able to earn little profit, whereas SBI alone was the only bank to rake in profits for all five consecutive years.
SBI's Hegemony in ATM Network
SBI is responsible for 31% of total cash withdrawals via ATMs in India. The bank has more than 65,000 ATMs, which is close to 30% of India's total ATM network. SBI charges withdrawal fees from its customers when they go beyond free transaction limits and also receives interchange fees from other banks when their customers withdraw money from SBI ATMs.
ATM Withdrawal Charges and RBI Guidelines
According to Reserve Bank of India (RBI) guidelines, banks are required to offer three free ATM withdrawals in metro and five in non-metro locations. Over this limit, withdrawal charges are incurred by customers, which add to the revenues of banks such as SBI.
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