If your account is in the country's largest government bank SBI, then the rules for withdrawing cash from ATM are changing from October 1. Under SBI ATM Rule Change, customers with salary accounts will now get less free transactions from ATMs of other banks. If you use ATM more than the limit, you will have to pay a charge.
State Bank of India has announced new rules to be implemented from 1 October 2026. This change will affect both salary account and BSBD (Basic Savings Bank Deposit) zero-balance account holders.
SBI ATM Rule Change: What changed for salary account holders
Earlier, salary account holders of SBI used to get 10 free transactions in a month from ATMs of other banks. Now from October 1, this limit has been reduced to only 5 times per month.
If you withdraw cash after crossing the limit, Rs 23 + GST will be charged on each transaction. Whereas if you only do non-financial transactions like balance check or mini statement, then you will have to pay a charge of Rs 11 + GST.
What is the harm to BSBD zero-balance account holders?
Those who have a Basic Savings Bank Deposit i.e. zero-balance account will now get free cash withdrawal only 4 times a month. After this, a charge of Rs 15 + GST will be charged on every cash withdrawal.
Cardless transactions still free
It is a matter of relief that cardless (without debit card) withdrawals from the YONO app will still remain completely unlimited and free. The bank wants to push customers towards digital and cardless payments.
If you frequently withdraw cash from ATM, now either use SBI's own ATM or adopt cardless transactions. Otherwise, at the end of the month, extra money will be deducted from your pocket in the name of bank charges.