Transaction tax

SBI charges cash withdrawal fees beyond 4 free transactions per month


NEW DELHI: As of July 1, the State Bank of India (SBI) will charge a fee for cash withdrawals beyond four free transactions in one month from customers with basic bank deposit accounts of savings (BSBD).
“In accordance with the revised service charge for BSBD accounts, the SBI will levy fees ranging from Rs 15 to Rs 75 for additional value-added services from July 1, 2021,” the country’s largest lender said in a statement. notification.
SBI BSBD account holders will also be billed for checkbooks in excess of 10 sheets per year.
Non-financial transactions and transfer transactions will be free at branches, ATM, CDM (cash machines) for BSBD account holders.
SBI has stated that it will charge Rs 15 plus GST (Goods and Services Tax) per cash withdrawal for transactions at bank branches, SBI ATMs or at other banks’ ATMs beyond 4 free cash withdrawals.
“Fees will be recovered beyond 4 free cash withdrawal transactions (including ATMs and branch),” SBI said.
For checkbook services, the first 10 check holidays will be free during a fiscal year. Subsequently, a checkbook of 10 sheets will be charged Rs 40 plus GST; The 25-sheet checkbook at Rs 75 plus GST and emergency checkbook will incur a fee of Rs 50 plus GST for 10 sheets or part of it, the SBI said.
“However, elderly customers are exempt (on checkbook services),” the public lender said.
BSBD accounts, commonly referred to as zero balance savings accounts, can be opened by any individual after valid KYC (know your customer) documentation.
According to a study revealed by IIT-Bombay in April of this year, SBI earned over Rs 300 crore by imposing service fees on nearly 12 crore of BSBD account holders during the period 2015-2020.
The study observed that SBI levying a fee of Rs 17.70 for each debit transaction in excess of four from BSBD account holders was not “reasonable”.
According to the study, outside of SBI, the second largest public sector lender, Punjab National Bank, collected Rs 9.9 crore on BSBD 3.9 crore accounts during the same period.
The collection of fees on BSBDA is guided by the RBI guidelines of September 2013. According to the instructions, these account holders are “allowed more than four withdrawals” per month, at the discretion of the bank, provided the bank does not charge not the same.
(With contributions from agencies)


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