State Bank of India (SBI) has announced an important change for customers who have salary package accounts.
From October 1, the number of free transactions allowed at other banks’ ATMs will be reduced.
This means SBI salary account holders who frequently use ATMs of other banks will need to keep a closer watch on their monthly transactions to avoid additional charges.
Free ATM Transactions Cut from 10 to 5
Currently, SBI salary package account holders get 10 free transactions every month at ATMs and Automated Deposit and Withdrawal Machines (ADWMs) of other banks across India.
From October 1, this limit will be reduced to five free transactions per month.
The five-transaction limit will include both financial and non-financial transactions.
So, cash withdrawals as well as services such as balance enquiries and other eligible ATM transactions will count toward the free limit.
Charges After Free Limit
SBI has reduced the number of free transactions, but it has not increased the charges applicable after the free limit is used.
After completing five free transactions, customers will have to pay ₹23 plus GST for each cash withdrawal made at another bank’s ATM.
For non-financial transactions made after the free limit, SBI will charge ₹11 plus GST per transaction.
Other SBI Account Holders Not Affected
SBI has clarified that this change specifically applies to salary package accounts.
There is no change in the monthly free transaction limits or service charges for other types of SBI accounts.
Similarly, there is no change in the existing free transaction limits and charges when SBI debit card holders use SBI’s own ATMs or ADWMs.
Cardless Cash Withdrawals Remain Free
There is also good news for customers who use cardless cash withdrawal services.
SBI has said there is no change in the rules for cardless cash withdrawals made through SBI or other banks’ ATMs and ADWMs.
The unlimited free cardless cash withdrawal facility will continue until further notice.
For SBI salary package account holders, the key date to remember is October 1.
After the new rule takes effect, using another bank’s ATM more than five times in a month could result in additional charges.
