SBI ATM Rule Change from Oct 1: The State Bank of India (SBI), the country's largest public sector bank, has issued a major update for its salary package account holders. The bank has decided to reduce the limit for free cash withdrawals and the use of other services at ATMs belonging to other banks. This new rule will come into effect on October 1.

Free ATM transactions reduced from 10 to 5

Under current rules, SBI salary package account holders can perform 10 free transactions per month at ATMs and Automated Deposit and Withdrawal Machines (ADWMs) of other banks across India. From October 1, this limit will be reduced to just 5 transactions. The bank has clarified that these 5 monthly free transactions will encompass both financial and non-financial transactions. This means that cash withdrawals as well as other non-financial ATM services will count towards this limit of 5 transactions.

What are the charges after the free limit is exhausted?

Despite the reduction in the free limit, SBI has not increased the service charges applicable after the free limit is exhausted. For cash withdrawals at other banks' ATMs beyond the prescribed free limit, SBI will continue to charge ₹23 plus GST, just as before. For non-financial transactions exceeding the limit, a charge of ₹11 plus GST will apply.

No changes for other account holders

In its public notice, SBI has clarified that this new rule applies specifically to salary package accounts. There have been no changes to the number of monthly free transactions or service charges for other types of accounts. Similarly, there are no changes to the free transaction limits or service charges for SBI debit card holders using SBI's own ATMs or ADWMs. Cardless cash withdrawal will remain completely free.

SBI has clarified that there have been no changes to the rules regarding cardless cash withdrawal transactions at SBI ATMs/ADWMs or those of other banks. According to the bank, the facility for unlimited free cardless cash withdrawals will continue until further notice.

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