Once the five free transactions are used, SBI salary package customers will be charged Rs 23 plus GST for each cash withdrawal at another bank’s ATM.
If you have an SBI salary account and often use ATMs of other banks, there is a change you need to keep in mind now. State Bank of India (SBI) has reduced the number of free monthly transactions available to its salary package account holders at other banks’ ATMs and Automated Deposit-cum-Withdrawal Machines.
From October 1, 2026, these customers will get five free transactions a month at other bank ATMs instead of 10 earlier. The limit includes both financial transactions, such as cash withdrawals, and non-financial transactions, such as balance enquiries. This means someone who regularly uses another bank’s ATM may start paying charges sooner than before.
How much will an extra cash withdrawal cost?
After using the five free transactions, SBI salary package customers will be charged Rs 23 plus GST for each cash withdrawal at another bank’s ATM. At 18 per cent GST, the total cost of one additional withdrawal works out to:
Rs 23 + Rs 4.14 GST = Rs 27.14
So, withdrawing cash just once after exhausting the free limit could cost a little over Rs 27. The amount can add up if you make several extra withdrawals.
For example:
One extra cash withdrawal: Rs 27.14
Three extra cash withdrawals: Rs 81.42
Five extra cash withdrawals: Rs 135.70
Suppose you were used to making 10 cash withdrawals from other bank ATMs every month because your salary account previously allowed 10 free transactions. If you continue making the same 10 withdrawals after October 1, the first five would remain free. The next five could cost Rs 115 before GST, or around Rs 135.70 after adding 18 per cent GST.
Over a year, that could add up to more than Rs 1,600 if the same pattern continues every month.
Balance enquiry can also use your free limit
There is another point customers should remember. The five-free-transaction limit is not restricted only to cash withdrawals. It includes financial as well as non-financial transactions at other banks’ ATMs. So, if you use another bank’s ATM three times to withdraw cash and twice for other transactions, you may already have exhausted your five free transactions for that month.
After the free limit, non-financial transactions at other banks’ ATMs carry a charge of Rs 11 plus GST for salary package customers, according to the revised structure.
What about SBI’s own ATMs?
The change mainly matters when salary package customers use ATMs of other banks. SBI salary package accounts continue to get unlimited free transactions at SBI’s own ATMs, according to the revised rules reported for October.
This means an SBI salary account holder who frequently needs cash may be able to avoid extra charges simply by using an SBI ATM instead of another bank’s machine after reaching the free limit.
Are regular savings accounts affected?
The October change should not be confused with the rules for all SBI savings account customers. For non-salary package savings accounts, the existing free transaction limits remain unchanged. Such customers continue to receive five free transactions per month at other bank ATMs and 10 cash transactions at SBI ATMs under the applicable structure.
Basic Savings Bank Deposit accounts follow a separate set of rules. SBI allows four free cash withdrawals in a month for these accounts. Withdrawals beyond that limit can attract a charge of Rs 15 plus GST under the revised rules effective October 1.
How can you avoid unnecessary ATM charges?
The easiest way is to keep track of the number of times you use another bank’s ATM during the month. Instead of withdrawing small amounts several times, taking out the required cash in fewer transactions can help.
Salary package account holders can also prefer SBI ATMs once they are close to the five-transaction limit at other banks.
Digital payments remain another option for day-to-day spending, particularly when cash is not necessary.
An ATM charge of Rs 27 may not look large on its own. But repeated several times every month, it becomes another avoidable expense. Knowing which transactions count towards your free limit can help keep that money in your account instead.
