SBI earns Rs 331 cr from ATM withdrawals, while other state-owned banks face losses, ET BFSI

State Bank of India (SBI), the biggest lender within the nation, stands as the only public sector financial institution producing revenue from ATM cash withdrawals. Within the 2023-24 monetary yr, SBI earned Rs 331 crore from this supply, whereas the opposite 11 state-owned banks collectively incurred a lack of Rs 925 crore, in response to a response from the finance ministry within the Lok Sabha.

SBI holds a dominant 31% share of the ATM money withdrawal market and operates the biggest ATM community in India, with over 65,000 ATMs, accounting for a 30% market share. On common, greater than 1.1 crore ATM transactions are processed day by day by way of these machines.

SBI’s earnings stem from ATM money withdrawal fees collected from its clients, in addition to interchange charges acquired from different banks. The revenue is calculated internet of the bills within the type of interchange charges paid to different banks.

Bank of Baroda incurred the very best loss on ATM money withdrawals for the fiscal yr 2023-24, amounting to Rs 212 crore, adopted by Union Bank with a lack of Rs 203 crore. Indian Bank additionally confronted a lack of Rs 189 crore from ATM money withdrawals.

In keeping with the Reserve Financial institution of India (RBI) pointers, clients are eligible for 5 free transactions per 30 days at their very own financial institution’s ATMs. They’re additionally entitled to a hard and fast variety of free transactions at different banks’ ATMs: three in metro facilities and 5 in non-metro facilities. These transactions will be monetary or non-financial.

For transactions past the free restrict, banks cost charges as per their respective board-approved insurance policies, with a most cost of Rs 21 plus relevant taxes per transaction. This price is often handed on to the client by the card-issuing financial institution, and the cost is paid to the financial institution the place the ATM transaction happens (the acquirer).

RBI knowledge reveals that, as of January 2025, India had 2,16,706 ATMs. Nevertheless, the quantity of ATM transactions has been steadily declining. Whereas over 57 crore money withdrawal transactions have been made at ATMs by January 2023, this quantity dropped to 52.72 crore by January 2024 and additional declined to 48.83 crore by January 2025.

Regardless of the decline within the variety of ATM transactions, money continues to play a vital position in India’s financial system. The 2021 enhance in interchange charges from Rs 15 to Rs 17 contributed to an enlargement of the ATM community. In FY 2023-24, common month-to-month money withdrawals from ATMs grew by 5.51% year-on-year, reaching Rs 1.43 crore.