SBI ATM Rules Changing October 1: Free Transactions Cut for Salary Account Holders
State Bank of India is set to revise the number of free transactions available to its salary-package customers at ATMs operated by other banks. The new rule will take effect on October 1, 2026, and will reduce the monthly free allowance from 10 transactions to five.
The change applies to all variants of SBI Salary Package Accounts when customers use an SBI debit card at another bank’s ATM or Automated Deposit and Withdrawal Machine in India.
Importantly, the revised limit covers both financial and non-financial transactions. This means cash withdrawals, balance enquiries, mini-statements and other eligible ATM requests can all count towards the five free monthly transactions.
SBI has not changed the fee charged after a customer crosses the free limit. The revision affects only the number of free transactions available each month.
What Will Change From October 1?At present, SBI Salary Package Account customers receive 10 free transactions every month at other banks’ ATMs and ADWMs. This facility is available across all centres and includes both financial and non-financial transactions.
From October 1, the allowance will be reduced to five transactions per month.
Particular Existing Rule Rule From October 1, 2026| Free transactions at other banks’ ATMs | 10 per month | 5 per month |
| Cash withdrawal after free limit | ₹23 plus GST | ₹23 plus GST |
| Non-financial transaction after free limit | ₹11 plus GST | ₹11 plus GST |
The official notice makes it clear that the applicable charges are not being increased. Customers will simply reach the chargeable threshold sooner because the free allowance is being halved. SBI’s official public notice
The revision applies specifically to customers holding an SBI Salary Package Account, irrespective of the account variant.
Salary-package accounts are offered to employees of companies, government departments, defence establishments and other eligible organisations. The benefits available under a particular package may depend on the employer category and salary band.
Customers holding an ordinary savings account or another type of SBI account are not covered by this particular revision. The number of free transactions and applicable fees for non-salary accounts will continue under the existing rules.
Account holders who are unsure about their account category can check it through YONO SBI, internet banking, their account statement or by contacting the bank.
No. The October 1 revision is limited to transactions performed at ATMs or ADWMs belonging to other banks.
SBI has stated that the existing limits and service charges for SBI debit card users at its own ATM and ADWM network will remain unchanged.
Salary-account customers can therefore reduce the risk of paying additional fees by preferring an SBI ATM whenever one is conveniently available. The bank’s revised-services page separately lists the October update for salary-package customers. SBI revised service charges
A common mistake is assuming that only cash withdrawals are counted under the free ATM limit. SBI’s notice says the five-transaction allowance includes both financial and non-financial activity.
Financial transactions mainly include cash withdrawals. Non-financial transactions can include:
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Balance enquiries
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Mini-statement requests
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PIN-related services
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Other account-information requests available at the ATM
For example, a customer who makes three cash withdrawals and checks the balance twice at other banks’ ATMs may exhaust the entire monthly free allowance.
Any additional cash withdrawal could then attract ₹23 plus GST, while another non-financial request could cost ₹11 plus GST.
What About Cardless Cash Withdrawals?Cardless cash withdrawals are not being restricted under this revision. According to SBI’s public notice, unlimited free cardless cash-withdrawal transactions will continue until further notice at SBI or other banks’ supported ATMs and ADWMs.
Customers should still follow the instructions displayed on the relevant banking application or ATM because the availability of cardless services can vary by machine and network.
How Can Customers Avoid Additional ATM Charges?Salary-account customers can manage the revised limit by changing a few routine habits.
They can use YONO SBI, mobile banking or internet banking for balance checks and account statements instead of visiting an ATM. UPI and other digital payment options can also reduce the need for frequent cash withdrawals.
Customers who require cash regularly may consider withdrawing a planned amount fewer times during the month instead of making several small withdrawals. When an ATM visit is necessary, using SBI’s own network may help preserve the five free transactions available at other banks’ machines.
It is also wise to avoid performing a separate balance enquiry before every withdrawal. A customer can check the available balance through the bank’s official digital channels before visiting the ATM.
The reduction may have little impact on customers who rarely use ATMs or primarily visit SBI machines. However, it could lead to additional expenses for people who frequently use other banks’ ATMs because of location, travel or limited access to SBI branches and machines.
Since the five free transactions include balance checks and other non-cash services, customers could cross the monthly limit without making five withdrawals.
The central point is that SBI is not reducing free transactions for every customer or across every ATM. The revision specifically affects Salary Package Account holders using other banks’ ATMs. From October 1, their monthly free limit will fall from 10 to five, while post-limit charges will remain unchanged.