SBI Halves Free ATM Limit, Salary Customers To Pay Sooner

Mumbai: State Bank of India (SBI) will cut the number of free monthly transactions for Salary Package Account holders using ATMs and Automated Deposit and Withdrawal Machines (ADWMs) belonging to other banks, starting October 1, 2026. Under the updated policy, these customers will be allowed five free transactions each month, down from the current allowance of 10.

This reduction applies to both financial and non-financial transactions, including cash withdrawals, balance inquiries, and other services. Once the free limit is exhausted, SBI's regular charges will apply. The bank has not raised the fee for each extra transaction. Customers exceeding their free transactions will face ₹23 plus GST per cash withdrawal at an ATM of another bank, or ₹11 plus GST for additional non-financial transactions.

A salary account holder making eight transactions at another bank's ATM currently incurs no charges, as all eight transactions fall within the existing 10-transaction allowance. From October, the last three transactions may incur charges, depending on their nature. The revised limit only applies to SBI Salary Package Account holders who use SBI debit cards at ATMs and ADWMs operated by other banks.

Transaction limits and fees for other account categories at SBI remain unchanged. SBI's cardless cash-withdrawal service remains unaffected, with no transaction cap. This revision primarily impacts salary account holders who frequently use their SBI debit cards at ATMs and ADWMs of other banks, as they will reach the paid-transaction threshold after five uses instead of 10 from October.