Banking and Finance

SBI cuts free ATM withdrawals for salary account holders from October 1

Dhanam News Desk

State Bank of India (SBI) is tightening the number of free ATM transactions available to salary account holders when they use other banks’ ATMs. From October 1, customers will get only five free transactions a month, down from the existing 10.

The revised limit applies to both financial and non-financial transactions at other banks’ ATMs and Automated Deposit cum Withdrawal Machines (ADWMs). The charges applicable after the free limit is exhausted, however, will remain unchanged.

The change means customers who frequently use non-SBI ATMs could see higher banking costs from next month.

What is changing for SBI salary account holders?

From October 1, 2026:

  • The monthly free ATM transaction limit at other banks’ ATMs will fall from 10 to five

  • The five-transaction limit will apply across all centres

  • Both financial and non-financial transactions will count towards the limit

  • The change applies to transactions at other banks’ ATMs and ADWMs

  • Charges after the free limit is exhausted will remain unchanged

Charges after the free limit

Once the five free transactions are used up, SBI salary account holders will have to pay:

  • Cash withdrawal: ₹23 + GST per transaction

  • Non-financial transaction: ₹11 + GST per transaction

These charges have been in force since December 1, 2025.

No change for SBI ATM users

The revised limit does not affect the existing monthly free transaction limit for customers using SBI ATMs and ADWMs.

SBI debit card users will continue to get 10 free transactions a month at SBI ATMs and ADWMs, including both financial and non-financial transactions.

This makes using an SBI ATM a potentially cheaper option for customers who regularly need cash or other ATM services.

No change for other SBI savings accounts

The latest change is specifically for salary package accounts. SBI has said that the monthly free transaction limit and applicable charges for accounts other than salary package accounts will remain unchanged.

Customers with these accounts will continue to get five free transactions a month across all centres, covering financial and non-financial transactions.

After the free limit is exhausted, the applicable charges will continue to be ₹23 + GST for cash withdrawals and ₹11 + GST for non-financial transactions.

Cardless cash withdrawals remain free

There is also no change in the charges for cardless cash withdrawals.

Customers using SBI’s cardless cash withdrawal facility at SBI ATMs/ADWMs or other banks’ ATMs/ADWMs will continue to get unlimited free transactions until further notice.

BSBD accounts

SBI is also revising charges for customers holding Basic Savings Bank Deposit (BSBD) accounts from October 1.

BSBD account holders will get four free cash withdrawals a month. Cash withdrawals beyond the first four will attract a charge of ₹15 + GST per transaction.

The cash withdrawal limit covers transactions through:

  • SBI branches

  • ATMs

  • Micro-ATMs

  • Aadhaar Enabled Payment System (AePS)

  • CASH@POS

However, digital fund transfers initiated through UPI, IMPS, NEFT and RTGS will continue to be free. POS transactions will also remain free, according to SBI.

What SBI customers should do

For salary account holders, the practical impact will depend on how often they use other banks’ ATMs.

Customers who make more than five such transactions a month can avoid additional charges by:

  • Using SBI ATMs wherever possible

  • Combining cash withdrawals rather than making frequent small withdrawals

  • Using digital payment methods for routine transactions

  • Checking whether a transaction is financial or non-financial before using another bank’s ATM

SCROLL FOR NEXT