State Bank of India (SBI) customers holding Salary Package Accounts should take note of an important ATM rule change coming into effect from October 1, 2026. The country's largest lender 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.

Under the revised rule, SBI Salary Package Account holders will get five free transactions per month at other banks' ATMs/ADWMs, compared with the existing allowance of 10.

The reduction applies across all centres and covers both financial and non-financial ATM transactions.

Once customers exhaust the five free transactions, they will have to pay the applicable service charge for additional transactions. However, SBI has not increased the post-limit charges as part of this October revision.

Here is what SBI customers need to know before the new rule becomes effective.

What Will Change for SBI Customers From October 1?

The key change concerns customers who have an SBI Salary Package Account and use their SBI debit card at an ATM or ADWM belonging to another bank.

Currently, these customers are entitled to 10 free transactions every month at other banks' ATM networks.

Starting October 1, 2026, this allowance will be reduced from 10 to five free transactions per month.

The five-transaction limit will apply at all centres.

This means customers who frequently use another bank's ATM may reach their monthly free allowance much sooner than before.

Cash Withdrawals and Non-Financial Transactions Both Count

Customers should remember that the five free transactions are not limited to cash withdrawals.

Both financial and non-financial transactions will be counted towards the monthly free limit.

For example, using another bank's ATM for a cash withdrawal counts as a transaction. Similarly, eligible non-financial ATM activities will also count towards the same free monthly allowance.

Therefore, Salary Package Account customers who regularly use non-SBI ATMs should keep track of their usage to avoid unnecessary charges after exhausting the free limit.

How Much Will SBI Charge After Five Free Transactions?

Once the monthly allowance of five free transactions at other banks' ATMs/ADWMs is exhausted, SBI's existing charges will apply.

For every additional cash withdrawal, customers will be charged:

₹23 + GST per transaction

For an additional non-financial transaction, the charge will be:

₹11 + GST per transaction

An important point is that SBI is not raising these charges under the October 1 revision. The major change is the reduction in the number of free transactions available to Salary Package Account holders.

For instance, if a customer completes all five free transactions at another bank's ATM and then makes another cash withdrawal, the additional withdrawal will attract a charge of ₹23 plus applicable GST.

Is the New Rule Applicable to Every SBI Customer?

No. The October 1 revision specifically concerns SBI Salary Package Account holders and their transactions at other banks' ATMs and ADWMs.

Customers holding account categories other than Salary Package Accounts are not being moved to the new 10-to-five structure under this particular revision.

SBI has stated that the existing monthly free transaction limits and applicable service charges for accounts other than Salary Package Accounts will remain unchanged.

This distinction is important because headlines suggesting that ATM rules are changing for every SBI account holder could be misleading.

What About Regular SBI Account Holders?

For customers outside the Salary Package Account category, the applicable free transaction allowance and charges continue under the existing structure.

Such customers continue to receive five free transactions per month at other banks' ATMs across all centres, covering financial as well as non-financial transactions.

Once that allowance is exhausted, the existing charge of ₹23 plus GST for a cash withdrawal and ₹11 plus GST for a non-financial transaction continues to apply.

These post-limit charges are not newly introduced from October 1.

What Happens When Salary Account Customers Use SBI ATMs?

The October revision is specifically related to transactions made by Salary Package Account holders at other banks' ATMs/ADWMs.

SBI's official Salary Package information indicates that eligible Salary Package Account customers have access to unlimited free transactions across SBI's ATM network in India.

This means Salary Package Account holders who frequently require cash can potentially avoid the charges associated with exceeding the free limit at other-bank ATMs by using SBI's own ATM network whenever convenient.

SBI has an extensive ATM and ADWM network across the country.

Cardless Cash Withdrawals Remain Unchanged

There is another important clarification for customers who use cardless withdrawal facilities.

SBI has stated that there is no change in the service-charge arrangement for cardless cash withdrawals at SBI or other banks' ATMs/ADWMs under the relevant revision.

Unlimited free cardless cash withdrawal transactions will continue until further notice, according to SBI's service-charge notice.

Customers should, however, follow the operational and transaction limits applicable to the particular cardless withdrawal facility they use.

Why Does This Change Matter for Salary Account Holders?

The impact will primarily be felt by SBI Salary Package Account customers who frequently depend on ATMs operated by other banks.

Until September 30, these customers have a monthly allowance of 10 free transactions at other-bank ATMs/ADWMs. From October 1, that allowance will effectively be cut in half.

A customer who uses another bank's ATM only once or twice a month may notice little practical difference.

However, someone who frequently withdraws cash or performs other transactions through non-SBI ATMs could cross the free threshold more easily.

That makes it important to distinguish between SBI's own ATM network and ATMs operated by other banks.

How Can Customers Avoid Extra ATM Charges?

Salary Package Account holders can manage their ATM usage more carefully once the new rule comes into force.

Where possible, they can prefer SBI's own ATMs and ADWMs instead of repeatedly using another bank's ATM.

Customers should also avoid unnecessary non-financial transactions at other-bank ATMs if the same information is available through SBI's digital banking channels.

Balance information, account details and several other banking services can now be accessed through mobile and internet banking without using an ATM.

The objective should not necessarily be to avoid ATM usage altogether, but to understand which transactions count towards the free allowance.

Check Whether Your Account Is Actually a Salary Package Account

Customers receiving their salary in an SBI account should not automatically assume that the account is classified as an SBI Salary Package Account.

SBI states that Salary Package benefits depend on the savings account being classified under the appropriate Salary Package and variant in the bank's system.

Customers can check their account classification through relevant SBI records or contact their branch if they are unsure.

This is important because the October 1 ATM revision is specifically linked to Salary Package Accounts.

Bottom Line

SBI's revised ATM rules will become effective from October 1, 2026, but the change does not affect every SBI customer in the same way.

The most important revision is for Salary Package Account holders using other banks' ATMs or ADWMs. Their monthly free transaction allowance will fall from 10 to five, including both financial and non-financial transactions.

After the free allowance is exhausted, an additional cash withdrawal will continue to cost ₹23 plus GST, while an additional non-financial transaction will attract ₹11 plus GST.

The charges themselves are not being increased under this revision; customers will simply have fewer free transactions before those charges begin to apply.

Salary Package Account customers who regularly use ATMs can therefore benefit from checking their monthly usage and choosing SBI's own ATM network whenever practical.