State Bank of India (SBI) has announced an important change for customers who have salary package accounts.
From October 1, the bank will reduce the number of free transactions allowed at ATMs of other banks.
This means SBI salary account holders who frequently use other banks’ ATMs may need to keep a closer watch on their monthly transactions to avoid extra charges.
Free ATM Transactions Reduced 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.
These five transactions will include both financial and non-financial transactions. So, cash withdrawals as well as services such as balance-related ATM transactions will count toward the free monthly limit.
How Much Will SBI Charge After 5 Transactions?
While SBI is reducing the number of free transactions, it has not increased the charges that apply after the free limit is used.
After completing five free transactions, customers will have to pay ₹23 plus GST for every cash withdrawal made from another bank’s ATM.
For non-financial transactions after the free limit, SBI will charge ₹11 plus GST per transaction.
Other SBI Account Holders Are Not Affected
SBI has clarified that this change is specifically for 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 for SBI debit card holders using SBI’s own ATMs or ADWMs.
Cardless Cash Withdrawals Will Remain Free
There is also good news for customers who use cardless cash withdrawals.
SBI has said that there is no change in the rules for cardless cash withdrawals at SBI ATMs/ADWMs or those of other banks.
The unlimited free cardless cash withdrawal facility will continue until further notice.