State Bank of India has slashed the number of free ATM transactions that salary account holders can make at other banks’ machines, cutting the monthly limit from 10 to five. The change took effect on October 1, and customers who ignore it will pay for every extra withdrawal.

The move is the latest in a slow squeeze by Indian banks. ATM networks cost money to run, and while UPI payments keep climbing, plenty of people still rely on cash. Banks have been trimming free ATM limits one by one, and SBI is now the latest to tighten its rules for salary account holders.

Five free trips, not ten

Until now, SBI salary account holders could make 10 free transactions a month at other banks’ ATMs. From October 1, that drops to five. The cap is not just for cash withdrawals. Balance checks and mini statements count against the same five free transactions.

That detail catches many people off guard. A customer who checks their balance twice and withdraws cash three times has already used up the free quota.

What each extra withdrawal really costs

Once a salary account holder crosses the five-transaction limit at another bank’s ATM, each extra cash withdrawal costs Rs 23 plus GST. That brings the total to Rs 27.14 per transaction.

The numbers add up fast. Three extra withdrawals in a month cost Rs 81.42. Five extra withdrawals cost Rs 135.70. If a customer keeps making extra withdrawals every month, the yearly bill crosses Rs 1,600.

The loophole that stays open

SBI’s own ATMs remain the safe option. The bank has placed no limit on free transactions at its own machines for salary account holders, so customers can make as many as they need without paying a charge.

Savings account holders face a different set of rules. They keep five free transactions a month at other banks’ ATMs, and they get 10 free cash withdrawals a month at SBI ATMs. The savings account rules have not changed.

Why this matters for everyday account holders

For many salaried employees, the ATM is still the main way to access cash. A lower free limit means the monthly cost of using another bank’s machine can climb quickly, especially for people who withdraw small amounts several times a week.

The fix is simple. Customers who use ATMs often should plan withdrawals in advance, use SBI machines where possible, and track how many free transactions they have left. A single missed count can turn into a Rs 27.14 charge that repeats every month.

SBI has urged account holders to take note of these new rules to avoid penalties.

The bank’s message is direct. Read the new limits, check your monthly usage, and avoid surprise charges. Customers who ignore the change could lose money they never planned to spend.