SBI Announces Changes to ATM Transaction Limits for Salary Package Account Holders
Important Changes for SBI Salary Package Account Holders
If you hold an account with the State Bank of India (SBI) and frequently withdraw cash from ATMs, it's crucial to be aware of the new regulations coming into effect on October 1, 2026. SBI has specifically revised the limit on free transactions at other banks' ATMs and ADWMs for Salary Package Account holders. Starting from this date, customers will only be entitled to five free transactions per month instead of the previous ten.
Once the free transaction limit is reached, withdrawing cash from other banks' ATMs may incur additional charges. However, it's important to note that the rules for transactions at SBI's own ATMs remain unchanged.
What Changes on October 1?
Currently, holders of the SBI Salary Package Account enjoy ten free transactions at other banks' ATMs/ADWMs each month. This limit will be reduced to five transactions per month starting October 1, 2026.
These five transactions will not only include cash withdrawals but also encompass both financial and non-financial transactions. Activities such as balance inquiries or mini statements will count towards your monthly free limit.
Charges After Free Limit Expires
If a Salary Package Account holder completes five free transactions at another bank's ATM within a month, any additional transactions will incur charges.
- Cash Withdrawal: ₹23 + GST per transaction
- Non-Financial Transactions: ₹11 + GST per transaction
For instance, if a customer has already completed five free transactions and withdraws cash a sixth time, they will need to pay ₹23 plus applicable GST for that additional withdrawal.
What About Using SBI ATMs?
Fortunately for customers, the changes effective from October 1 only pertain to transactions at other banks' ATMs/ADWMs.
There will be no reduction in the current benefits for Salary Package Account holders using SBI's own ATMs/ADWMs. SBI has confirmed that the free transaction facility at its ATMs will continue for various categories of Salary Package Accounts, including the Shaurya Family Pension Account and SBI RISTHEY Family Savings Account.
Impact on Regular SBI Savings Account Holders
If you do not possess an SBI Salary Package Account, this specific change will not directly affect you. SBI has clarified that the existing free transaction arrangements for other accounts at other banks' ATMs will remain unchanged.
Thus, it is essential to first determine whether your account is a Salary Package Account or another type before worrying about these changes.
Why Should ATM Users Be Cautious?
The new regulations will particularly impact customers who frequently use other banks' ATMs. Previously, Salary Package Account holders enjoyed ten free transactions, but now they will face additional charges after five transactions.
For example, if a customer withdraws cash four times and checks their balance once in a month, they will have exhausted their five free transactions. Any further transactions that month will incur charges.
Is There an Increase in ATM Charges?
It's crucial to understand that the primary change on October 1 is not an increase in transaction fees but a reduction in the number of free transactions.
The free limit for Salary Package Account holders at other banks' ATMs will decrease from ten to five. After exceeding this limit, cash withdrawals will still incur charges of ₹23 + GST, while non-financial transactions will cost ₹11 + GST.
Separate Changes for BSBD Accounts
SBI has also announced modifications to cash withdrawal fees associated with Basic Savings Bank Deposit (BSBD) Accounts, effective October 1, 2026. Eligible BSBD accounts will allow four free cash withdrawals each month, after which a fee of ₹15 + GST will apply for each additional cash withdrawal.
This change is distinct from the five-transaction rule for Salary Package Accounts, so customers should review the applicable rules based on their account type.
Impact on Digital Transactions
Under the revised rules for BSBD accounts, the four-cash-withdrawal limit does not apply to digital transactions, which will continue to be available.
This means that cash withdrawals and digital payments should not be considered the same type of transaction.
Key Points for SBI Customers
- From October 1, 2026, the free transaction limit for Salary Package Account holders at other banks' ATMs will reduce from 10 to 5.
- Both financial and non-financial transactions will count towards this five-transaction limit.
- After exceeding the limit, cash withdrawals will incur charges of ₹23 + GST, and non-financial transactions will incur ₹11 + GST.
- This change does not affect transactions at SBI's own ATMs.
- The specific change from 10 to 5 transactions does not apply to regular SBI accounts.
- For BSBD accounts, a different rule applies after four free cash withdrawals, charging ₹15 + GST for each additional withdrawal.
Official Information from SBI
SBI has published details regarding the changes to the number of free monthly ATM transactions for Salary Package Account holders and service charges for BSBD accounts on its official website.
Conclusion
Starting October 1, 2026, ATM usage will not become more expensive for all SBI customers. The most significant change will be the reduction in the free transaction limit for Salary Package Account holders at other banks' ATMs, which will drop from ten to five.
Therefore, if you frequently withdraw cash from other banks' ATMs using an SBI Salary Package Account, it is essential to be aware of these new regulations. However, there will be no deductions in the rules associated with SBI's own ATMs.