Financial transaction

SBI will charge cash withdrawal fees beyond four free transactions per month


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SBI said it will charge 15 plus GST per cash withdrawal for transactions at bank branches, SBI ATMs or other banks’ ATMs in excess of four free cash withdrawals.

The country’s largest lender, State Bank of India (SBI), will charge fees for cash withdrawals beyond four free transactions in a month from customers with basic savings bank deposit accounts (BSBD).

These customers will also be billed for checkbooks in excess of 10 sheets per year.

In accordance with the revised service fee for BSBD accounts, the State Bank of India (SBI) will levy fees ranging from ₹ 15 to ₹ 75 for ‘additional value added services’ as of July 1, 2021.

Non-financial transactions and transfer transactions will be free at branches, ATM, CDM (cash machines) for BSBD account holders.

SBI said it will charge 15 plus GST per cash withdrawal for transactions at bank branches, SBI ATMs or other banks’ ATMs in excess of four free cash withdrawals.

“Fees will be recovered beyond four 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.

Thereafter, a 10-sheet checkbook will be charged 40 plus GST; The 25-sheet checkbook at 75 plus GST and emergency checkbook will incur a fee of 50 plus GST for 10 sheets or part of it, the SBI said.

“However, senior customers are exempt (on checkbook services),” the public lender said.

BSBD accounts can be opened by anyone after valid KYC (know your customer) documentation.

These accounts are primarily intended for the poorer segments of society to encourage them to start saving without any burden of charges or fees.

According to a study revealed by IIT-Bombay in April of this year, SBI earned over 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 17.70 for each debit transaction in excess of four on BSBD account holders was not “reasonable”. According to the study, apart from SBI, the second largest public sector lender, Punjab National Bank, raised 9.9 crore on BSBD accounts by 3.9 crore 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.

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