SBI ATM Rule Change: Free Limit Cut From October 1

By: Sachin Kumar • September 03, 2026

SBI ATM Rule Change: Free Transactions at Other Bank ATMs to Be Cut From October 1

If you have an SBI account and regularly use ATMs of other banks, an important rule change is coming into effect next month. State Bank of India has announced a revision in the number of free monthly ATM and ADWM transactions available to certain Salary Package Account holders.

The SBI ATM rule change for Salary Package Account holders will take effect from October 1, 2026. Under the revised rule, the free transaction limit at other banks' ATMs and Automated Deposit cum Withdrawal Machines (ADWMs) will be reduced from 10 transactions per month to 5 transactions per month.

However, the change does not apply uniformly to every SBI customer. Regular savings account holders and Salary Package Account holders have different rules, making it important to understand exactly which category applies to your account.

What Is Changing in SBI's ATM Rules?

According to SBI's updated service charges information, the bank has announced a revision in the number of free monthly ATM transactions at other banks' ATMs/ADWMs for Salary Package Account holders, effective October 1, 2026.

Until now, eligible Salary Package Account holders could receive up to 10 free monthly transactions at ATMs or ADWMs operated by other banks.

From October 1, that limit will be reduced to:

5 free transactions per month at other banks' ATMs/ADWMs
The revised limit covers the transactions specified under SBI's updated service charge policy.
Transactions beyond the applicable free limit may attract charges according to SBI's prevailing service-charge schedule.

This means the biggest impact will be on customers who frequently withdraw cash or use banking services through non-SBI ATMs.

Who Will Be Affected by the New Rule?

The key point is that this is primarily a change for SBI Salary Package Account holders using facilities of other banks.

The official SBI service charges page specifically lists the revision as applying to the number of free monthly ATM transactions at other bank ATMs/ADWMs for Salary Package Account holders from October 1, 2026.

Therefore, an SBI customer should not assume that the headline applies to every type of account in exactly the same way.

If you hold a regular savings account, your applicable free transaction limits depend on SBI's existing service-charge rules and the type of ATM being used. SBI's ATM services information also notes that free transactions at other domestic banks' ATMs are governed by the applicable limits for savings bank customers.

What About SBI's Own ATMs?

For affected Salary Package Account holders, the important distinction is between an SBI-operated ATM and an ATM operated by another bank.

The reported revision concerns the use of other banks' ATMs and ADWMs. SBI's own network continues to play an important role in helping customers avoid or reduce ATM transaction charges, depending on their account category and the applicable service rules.

For customers who frequently need cash, this could change their behaviour. Someone who previously used several different bank ATMs throughout the month may now have a stronger reason to locate and use an SBI ATM instead.

Why Does This Change Matter?

At first glance, reducing the free transaction limit from 10 to 5 may appear to be a small operational change. But for customers who frequently depend on non-SBI ATMs, the impact could add up over time.

For example, imagine a Salary Package Account holder who uses another bank's ATM eight times a month. Under the earlier 10-transaction free limit, all those transactions could fall within the available free usage, subject to the applicable policy.

After the new rule takes effect, the same customer could exceed the revised limit of five transactions.

That does not necessarily mean every SBI customer will face higher charges. The actual impact will depend on:

The type of SBI account held
Whether the customer uses SBI or another bank's ATM
The number of transactions made during the month
The applicable financial and non-financial transaction rules
SBI's prevailing service charges

This is why customers should check their account category rather than relying only on broad social media posts or headlines about an "SBI ATM rule change."

Existing ATM Charges and Transaction Limits

SBI has previously revised ATM transaction charges and maintains detailed service-charge schedules for different account categories.

For savings account holders, SBI's published information has outlined different free transaction limits depending on the ATM used and the customer's account conditions. The bank's official ATM services page also states that transactions at other domestic banks' ATMs are subject to applicable free transaction limits under the relevant rules.

Under the service charge information published by SBI for previous revisions, charges beyond the applicable free transaction limit could apply separately to financial and non-financial transactions, depending on the account category and ATM network used.

Customers should therefore check the latest SBI schedule applicable to their specific account before calculating any possible monthly cost.

What SBI Customers Should Do Before October 1

There is no need for panic, but this is a good time to review how often you use ATMs.

Here are a few practical steps:

1. Check Whether Your Account Is a Salary Package Account

The October 1 change specifically highlights Salary Package Account holders. Confirm your account type through SBI's official banking channels or customer service.

2. Track Your Monthly ATM Usage

Many people use an ATM for small withdrawals several times during a month without keeping count. Monitoring transactions can help you avoid crossing the applicable free limit.

3. Prefer Your Own Bank's ATM When Convenient

If you regularly withdraw cash, using an SBI ATM may help you manage transaction limits and charges more efficiently, depending on your account category.

4. Use Digital Payments Where Suitable

UPI and other digital payment methods can reduce the need for frequent cash withdrawals. This does not mean customers should stop using ATMs, but fewer unnecessary withdrawals can make it easier to stay within the applicable free limit.

5. Check the Latest Service Charge Schedule

ATM rules can vary by account type and may be revised over time. SBI customers should rely on the latest information published by the bank rather than outdated ATM-limit charts circulating online.

What This Means for Customers

The SBI ATM rule change from October 1, 2026 is a targeted revision that customers should understand carefully. The major change is the reduction in free monthly transactions at other banks' ATMs/ADWMs for SBI Salary Package Account holders—from 10 to 5.

For regular SBI savings account holders, the situation may be different, as their transaction limits are governed by the existing service-charge structure and applicable ATM rules.

The practical takeaway is simple: check your SBI account category, monitor how often you use non-SBI ATMs, and review the latest service charges before the revised rule takes effect.

For customers who rarely use other banks' ATMs, the impact may be limited. But frequent ATM users—particularly those with SBI Salary Package Accounts—may need to adjust their banking habits from October.

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