State Bank of India (SBI) customers holding certain salary accounts should take note of an important ATM-related change scheduled to come into effect from October 1, 2026. The country's largest public-sector bank is revising the number of free transactions available to its Salary Package Account holders when they use ATMs or Automated Deposit and Withdrawal Machines (ADWMs) operated by other banks.
Under the revised rules, eligible Salary Package Account customers will get five free transactions per month at other banks' ATMs and ADWMs instead of the existing 10.
The change covers both financial and non-financial ATM transactions. Customers who frequently use ATMs belonging to other banks may therefore need to keep a closer watch on their monthly usage once the revised limit takes effect.
Here is a detailed look at what is changing, which customers will be affected and what SBI will charge after the free monthly quota is exhausted.
SBI Cuts Free ATM Transactions From 10 to 5
At present, SBI Salary Package Account holders are allowed up to 10 free transactions every month at ATMs and ADWMs belonging to other banks across India.
From October 1, 2026, that benefit will be reduced to five free transactions per month.
This effectively halves the number of complimentary transactions available at other banks' machines for customers covered by the new rule.
Another important point is that the five-transaction allowance is not limited to cash withdrawals. Both financial and non-financial transactions will be counted toward the monthly quota.
Therefore, customers should not assume that they can make five free cash withdrawals in addition to other free ATM services.
What Counts Towards the Five Free Transactions?
Financial transactions generally include services such as withdrawing cash from an ATM.
Non-financial ATM services can include other transactions performed through the machine. Under the revised structure described by SBI, both categories will be considered while calculating the customer's monthly free transaction usage at other banks' ATMs and ADWMs.
For example, if an eligible customer completes a combination of financial and non-financial transactions that reaches the five-transaction monthly limit, subsequent transactions may attract applicable charges.
This makes it important for Salary Package Account holders to understand that the new limit applies to the overall number of qualifying transactions rather than only cash withdrawals.
How Much Will SBI Charge After the Free Limit Is Used?
While SBI is reducing the number of complimentary transactions for the affected Salary Package Accounts, the bank has not increased the service charges applicable after customers cross the free limit.
According to the details provided in the bank's notice, a cash withdrawal from another bank's ATM after the free monthly quota has been exhausted will continue to cost ₹23 plus GST per transaction.
For a non-financial transaction carried out after the free allowance has been used, the charge will remain ₹11 plus GST per transaction.
This means the major revision is to the number of free transactions rather than the charges imposed after that limit is crossed.
Customers who regularly depend on other banks' ATMs may therefore face higher overall monthly ATM expenses even though the per-transaction fee itself has not increased.
Are All SBI Account Holders Affected?
No. This is an important distinction for SBI customers.
According to the information provided in SBI's public notice, the revised limit specifically applies to Salary Package Accounts.
The bank has stated that there is no change in the applicable monthly free transaction limits and service charges for other categories of accounts covered by their existing rules.
Therefore, customers should first identify the type of SBI account they hold before assuming that their ATM benefits will change from October 1.
What About Transactions at SBI's Own ATMs?
The revision described in the notice concerns Salary Package Account holders using ATMs or ADWMs operated by other banks.
SBI has said that there is no change in the applicable free transaction limits or service charges when SBI debit cardholders use the bank's own ATMs or ADWMs.
This distinction could become particularly useful for customers who frequently withdraw cash. Salary Package Account holders affected by the revised rules may want to use SBI's own ATM network where convenient rather than routinely relying on another bank's ATM.
Cardless Cash Withdrawals Remain Free
There is also some relief for customers who use cardless cash withdrawal facilities.
SBI has clarified that there is no change in the rules for cardless cash withdrawal transactions made through SBI ATMs/ADWMs or the ATMs/ADWMs of other banks.
According to the information provided by the bank, unlimited free cardless cash withdrawals will continue until further notice.
Customers who use this facility can therefore continue making eligible cardless withdrawals without being affected by the new five-transaction limit described for the Salary Package Account ATM benefit.
What SBI Salary Account Customers Should Remember
The revised ATM rules are scheduled to become effective from October 1, 2026. Salary Package Account holders who regularly use another bank's ATM should keep the new monthly allowance in mind.
The key change is straightforward: the existing allowance of 10 free monthly transactions at other banks' ATMs and ADWMs will fall to five.
Once those free transactions are exhausted, cash withdrawals will continue to attract a charge of ₹23 plus GST, while non-financial transactions will cost ₹11 plus GST.
The five free transactions include both financial and non-financial usage, so every qualifying transaction at another bank's machine could count toward the monthly allowance.
At the same time, SBI has not announced a similar change for other account categories under this particular revision, and the applicable rules for transactions at SBI's own ATMs and ADWMs remain unchanged.
Bottom Line
SBI's upcoming ATM rule change does not affect every customer, but Salary Package Account holders who frequently use other banks' ATMs should pay attention.
From October 1, 2026, their free monthly transaction allowance at other banks' ATMs and ADWMs will be reduced from 10 to five. Charges beyond the free limit will remain unchanged at ₹23 plus GST for cash withdrawals and ₹11 plus GST for non-financial transactions.
Customers can reduce the possibility of paying additional fees by keeping track of their ATM usage and choosing SBI's own network where appropriate. Cardless cash withdrawals, meanwhile, will continue to remain unlimited and free until further notice under the terms described by the bank.
