SBI will charge beyond four free cash withdrawals every month
(Sourced from PTI)
The country's largest lender SBI will levy charges for cash withdrawal beyond four free transactions in a month from customers holding the basic savings bank deposit (BSBD) accounts. As per the revised service charges for BSBD accounts, the State Bank of India (SBI) will levy charges ranging from Rs. 15 to Rs. 75 for the "additional value-added services" with effect from July 1, 2021.
The customers will be levied charges for check books beyond 10 leaves in a year. Non-financial transactions and transfer transactions will be free at branches, ATMs, CDM (cash dispensing machines) for the BSBD account holders. SBI said it will charge Rs. 15 plus GST per cash withdrawal for transactions at bank branches, SBI ATM, or from other bank's ATMs beyond four free cash withdrawals.
With respect to checkbook services, the first ten check leaves will be free of cost in a financial year. Thereafter, 10 leaf checkbooks will be levied Rs. 40 plus GST; 25 leaf checkbooks at Rs. 75 plus GST and emergency checkbooks will attract a charge of Rs. 50 plus GST for 10 leaves or part thereof. However, senior citizens are exempted (on checkbook services).
BSBD accounts can be opened by any individual after valid KYC documentation. Such accounts are primarily meant for poorer sections of society to encourage them to start saving without any burden of fees/charges. According to a study revealed by IIT-Bombay in April, SBI earned over Rs. 300 crore by way of imposing service charges on nearly 12 crore BSBD account holders during 2015-20.
The study observed that SBI levying a charge of Rs. 17.70 for every debit transaction beyond four on the BSBD account holders was "not reasonable." As per the study, apart from SBI, the second-largest public sector lender Punjab National Bank collected Rs. 9.9 crore from 3.9 crore BSBD accounts during the same period.
Levying of charges on BSBDA is guided by September 2013 RBI guidelines. As per the direction, these accounts holders are "allowed more than four withdrawals" in a month at the bank's discretion provided the bank does not charge for the same.