SBI to halve free other-bank ATM transactions for salary accounts from October 1

State Bank of India will reduce free monthly transactions at other-bank ATMs and ADWMs for salary-account debit-card holders to five from 10. SBI ATM users retain 10 free transactions; BSBD accounts get four free withdrawals before charges apply.

— Source publishedThu, 10 Sept, 2026, 16:22 IST·First seen Thu, 10 Sept, 2026, 16:32 IST·Source Financial Express · BrandWagon

What happened

State Bank of India (SBI) · SBI will halve free monthly other-bank ATM/ADWM transactions for salary-account debit-card holders to five from October 1, 2026,

Key facts

  • Salary-account free transactions at other-bank ATMs/ADWMs reduced from 10 to 5 per month
  • Cash withdrawal after free limit: Rs 23 plus GST
  • Non-financial transaction after free limit: Rs 11 plus GST
  • SBI ATM/ADWM debit-card users retain 10 free transactions monthly
  • BSBD customers receive 4 free withdrawals monthly; subsequent withdrawals cost Rs 15 plus GST
  • Other non-salary accounts retain 5 free transactions monthly

Why this matters

Banks, ATM networks, and fintech cash-access partners should assess whether SBI’s tighter limits can shift transaction volumes toward proprietary ATM estates, shared networks, or alternative digital payment rails.

What to watch

  • Customer complaint volume, social-media sentiment, and account-switching activity after October 1.
  • SBI disclosures on ATM transaction volumes, interchange income, fee income, and digital-payment growth.
  • Whether peer banks revise salary-account ATM benefits or launch targeted payroll-account acquisition campaigns.
  • RBI or consumer-protection scrutiny if ATM charges become a broader competitive or financial-inclusion issue.
  • Changes in off-us ATM withdrawal frequency versus SBI ATM usage among salary-account holders.
  • SBI is likely to communicate the revised limits through SMS, email, branch notices, and app notifications before the October 1 effective date.
  • The bank may promote SBI ATM locator tools, YONO/UPI usage, and cashless-payment features to redirect affected customers into lower-cost channels.
  • Competing banks may selectively advertise higher free non-home ATM limits to salary-account customers, especially in cities with dense ATM networks.
  • Retailers and cash-dependent merchants may see a small shift toward digital payment tender as customers seek to avoid repeated cash withdrawals.