The Two Main Groups Affected
The changes taking effect from October 1, 2026, primarily impact two specific categories of State Bank of India customers: those with Salary Package accounts and those holding Basic Savings Bank Deposit (BSBD) accounts. If you have a regular savings account,
the existing rules for your account remain unchanged for now. The adjustments are targeted and it's crucial to identify which account you hold to understand if your banking habits need a second look. For millions of customers in these two groups, being unaware of the new limits could lead to a month-end surprise in their bank statements.
For Salary Account Holders: A Cut in Free Transactions
If you have an SBI Salary Package account, the biggest change is a reduction in the number of free transactions you can make at other banks' ATMs. Previously, you were allowed 10 free transactions per month at non-SBI ATMs. Starting October 1, this number is being cut in half to just five free transactions per month. This new limit of five includes both financial transactions (like cash withdrawals) and non-financial ones (such as checking your balance or getting a mini-statement). Once you cross this limit, each cash withdrawal will cost ₹23 plus GST, while a non-financial transaction will set you back ₹11 plus GST. Notably, the free transaction limits at SBI's own ATMs for salary account holders remain generous, with some accounts still enjoying unlimited free transactions.
For BSBD Account Holders: A Cap on Free Cash Withdrawals
Customers with Basic Savings Bank Deposit (BSBD) accounts, which are designed for financial inclusion and don't require a minimum balance, also face new terms. These account holders are entitled to four free cash withdrawals per month. This limit is comprehensive and includes withdrawals from SBI ATMs, other bank ATMs, and even at the bank branch itself. After these four free transactions are used up, any subsequent cash withdrawal will be charged at a rate of ₹15 plus GST per transaction. It's an important distinction that digital transactions, like NEFT, IMPS, or UPI, remain completely free and are not counted towards this four-withdrawal limit, encouraging a shift towards digital payments.
Why You Might End Up Paying More
The customers most likely to be impacted are those who rely heavily on cash and frequently use the most convenient ATM, regardless of the bank. A Salary Package account holder who withdraws small amounts of cash multiple times a week from various non-SBI ATMs could easily exceed the new five-transaction limit. Similarly, a BSBD account holder who depends on cash for daily expenses and makes more than one withdrawal a week could find themselves paying extra fees. The key is that non-financial transactions, like simply checking your balance at another bank's ATM, now also count towards the monthly quota for salary account holders, a detail that many might overlook.
How to Avoid or Minimize Extra Charges
The most effective way to avoid these new charges is to adapt your banking habits. First, prioritize using SBI's own ATM network whenever possible, as the free transaction limits are much higher. Second, plan your cash needs. Instead of making multiple small withdrawals, take out a larger sum in a single transaction to last you longer. Third, embrace digital payments. Using UPI for merchant payments or NEFT/IMPS for transfers does not count against your ATM withdrawal limits and is being encouraged by the bank. Finally, keep track of your transactions. Being mindful of how many times you've used an ATM, especially a non-SBI one, can save you from accidentally crossing the free limit.
