State Bank of India (SBI) customers with Salary Package Accounts should be aware of an important ATM rule change taking effect from October 1, 2026. The bank is reducing the number of free monthly transactions available to these customers when they use ATMs or Automated Deposit and Withdrawal Machines (ADWMs) operated by other banks.

At present, SBI Salary Package Account holders are allowed 10 free transactions every month at other banks’ ATMs and ADWMs across all centres. From October 1, 2026, this allowance will be reduced to just five free transactions per month.

The revised limit will include both financial and non-financial transactions. This means customers who frequently use non-SBI ATMs could reach the free monthly limit much faster than before.

Importantly, SBI is not introducing higher post-limit charges under this particular revision. The major change is the reduction in the number of free transactions available to Salary Package Account holders.

What Is Changing From October 1, 2026?

The new rule specifically applies to SBI Salary Package Savings Bank Account holders using their SBI debit cards at ATMs and ADWMs belonging to other banks.

Currently, these customers receive 10 free transactions per month at other-bank ATMs across all centres.

From October 1, the free monthly allowance will be reduced to five transactions.

The revised five-transaction allowance will cover both financial and non-financial transactions.

Therefore, customers should not assume that only cash withdrawals will count towards the free limit. Eligible non-financial ATM transactions will also be included while calculating monthly usage.

How Much Will SBI Charge After the Free Limit?

Once a Salary Package Account holder completes the five free monthly transactions at other banks’ ATMs or ADWMs, SBI’s existing post-limit charges will apply.

For every additional cash withdrawal, the customer will have to pay:

₹23 plus GST per transaction

For every additional non-financial transaction after the free limit, the charge will be:

₹11 plus GST per transaction

These charges are not being increased from October 1. They have already been applicable under the existing ATM service-charge structure.

The October revision changes the point at which Salary Package Account holders begin paying these charges because their free allowance is being reduced from 10 transactions to five.

Simple Example: How the New Rule Will Work

Suppose an SBI Salary Package Account customer uses another bank’s ATM six times during October.

The first five eligible transactions will fall within the monthly free allowance.

If the sixth transaction is a cash withdrawal, the customer will be charged ₹23 plus applicable GST.

Similarly, if the sixth transaction is a chargeable non-financial transaction, the applicable fee will be ₹11 plus GST.

For customers who regularly depend on nearby ATMs belonging to other banks, the reduction in the free limit could therefore increase monthly banking costs.

Does the New Rule Apply to Every SBI Customer?

No. This is one of the most important points customers should understand.

The October 1 revision is specifically related to SBI Salary Package Accounts and the use of other banks’ ATMs and ADWMs.

SBI has clarified that the number of monthly free transactions and applicable service charges for accounts other than Salary Package Accounts will remain unchanged.

This means the rule should not be interpreted as a blanket reduction in ATM benefits for every SBI savings account customer.

What About Other SBI Savings Account Customers?

For eligible SBI savings accounts outside the Salary Package category, the existing free transaction structure at other banks’ ATMs continues unchanged.

Such customers currently receive five free transactions per month at other-bank ATMs across all centres, including both financial and non-financial transactions.

After exhausting the free allowance, a cash withdrawal attracts ₹23 plus GST, while an applicable non-financial transaction costs ₹11 plus GST.

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

Will Salary Account Holders Still Get Free Transactions at SBI ATMs?

The October 1 change relates to transactions carried out at other banks’ ATMs and ADWMs.

Salary Package Account holders continue to have a significant advantage when they use SBI’s own ATM network.

SBI Salary Package Accounts are eligible for unlimited free transactions at SBI ATMs across locations, irrespective of the account variant.

Therefore, customers who frequently withdraw cash can reduce the possibility of additional charges by preferring an SBI ATM wherever convenient.

What About Cardless Cash Withdrawals?

There is also good news for customers using cardless withdrawal facilities.

SBI has clarified that there is no change in the applicable rules for cardless cash withdrawals at SBI ATMs/ADWMs or other banks’ ATMs/ADWMs under this revision.

Unlimited free cardless cash withdrawal transactions will continue until further notice, subject to the conditions and operational limits applicable to the service.

Customers using such facilities should always access them through official SBI channels and follow the bank’s security instructions.

Why Should Salary Account Holders Pay Attention?

The new rule may not significantly affect customers who rarely use other banks’ ATMs.

For instance, a customer making only one or two such transactions in a month will remain comfortably within the free limit.

However, the impact could be greater for people who regularly use non-SBI ATMs because they are closer to their home, office or workplace.

Since financial and non-financial transactions both count towards the five-transaction allowance, frequent users may cross the free threshold sooner than expected.

Keeping track of ATM usage could therefore become more important from October.

How Can SBI Customers Reduce ATM Charges?

Salary Package Account holders can take a few simple steps to manage the revised limit.

The easiest option is to prefer SBI ATMs and ADWMs whenever they are conveniently available.

Customers can also use SBI’s mobile and internet banking facilities for services that do not require cash. Checking account information or performing digital transactions through official banking channels may reduce unnecessary visits to other banks’ ATMs.

Customers should also remember that multiple small cash withdrawals at non-SBI ATMs can quickly consume the monthly free allowance.

Planning cash requirements in advance could help reduce the number of ATM visits.

Check Whether You Have an SBI Salary Package Account

Receiving a salary in an SBI savings account does not necessarily mean that every such account automatically has all Salary Package benefits.

Customers who are unsure about their account category should check whether their account is classified under SBI’s Salary Package programme and which variant applies to them.

This is particularly important because the October 1 change is specifically targeted at Salary Package Account holders.

Customers can check their account details through SBI’s official banking channels or contact their branch for clarification.

SBI ATM Rules From October 1: Key Points to Remember

The most important change is straightforward: SBI Salary Package Account holders will see their free monthly transaction allowance at other banks’ ATMs and ADWMs fall from 10 to five from October 1, 2026.

The five free transactions will include both financial and non-financial transactions.

Once the free limit is exhausted, cash withdrawals will continue to attract a charge of ₹23 plus GST per transaction, while applicable non-financial transactions will continue to cost ₹11 plus GST.

The charges themselves are not being increased under the October revision.

Other account categories are not affected by this particular reduction, and their existing free transaction limits and service charges will continue.

Bottom Line

SBI’s ATM rule change from October 1, 2026 is particularly important for Salary Package Account customers who frequently use ATMs operated by other banks.

Their free monthly transaction allowance at other banks’ ATMs and ADWMs will be reduced by half—from 10 to five transactions. After the free limit is exhausted, customers will continue to pay ₹23 plus GST for an additional cash withdrawal and ₹11 plus GST for an applicable non-financial transaction.

The revision does not mean that all SBI customers are losing half of their free ATM transactions. It specifically applies to Salary Package Account holders using other-bank ATMs/ADWMs.

For customers affected by the change, using SBI’s own ATM network whenever possible and keeping track of non-SBI ATM usage can help avoid unnecessary transaction charges after the new rules take effect.