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SBI to Levy Charges for Cash Withdrawal Beyond 4 Free Transactions Per Month

SBI collected more than Rs 300 crore by imposing service charges on almost 12 lakh BSBD account users between 2015 and 20.

SBI to Levy Charges for Cash Withdrawal Beyond 4 Free Transactions Per Month

Sentinel Digital Desk

NEW DELHI:

SBI, the country's largest lender, would charge clients with basic savings bank deposit (BSBD) accounts for cash withdrawals that exceed four free transactions each month.

These clients will also be charged if they use their cheque book more than 10 times in a year.

State Bank of India (SBI) would collect charges ranging from Rs 15 to Rs 75 for extra value added services with effect from July 1, 2021, according to the adjustment in service costs for BSBD accounts.

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

Beyond the first four free cash withdrawals, SBI would charge Rs 15 plus GST each cash withdrawal at bank branches, SBI ATMs, or other banks' ATMs.

"Charges will be recovered beyond 4 free cash withdrawal transaction (including ATM and branch)," SBI said.

In terms of cheque book services, the first ten cheque leaves will be provided free of charge each fiscal year.

Following that, a 10 leaf check book will cost Rs 40 plus GST, a 25 leaf cheque book will cost Rs 75 plus GST, and an emergency cheque book would cost Rs 50 plus GST for 10 leaves or a portion thereof, according to SBI.

Any individual can open a BSBD account after providing appropriate KYC (know your customer) documents.

Such accounts are primarily intended for the weaker segments of society in order to encourage people to begin saving without the burden of charges or fees.

According to a research released in April this year by IIT-Bombay, SBI collected more than Rs 300 crore by imposing service charges on almost 12 lakh BSBD account users between 2015 and 20.

According to the research, SBI charging BSBD account users Rs 17.70 for every debit transaction beyond four was not fair.

Apart from SBI, the second largest public sector lender, Punjab National Bank, received Rs 9.9 crore from 3.9 crore BSBD accounts over the same time, according to the research.

The levying of charges on BSBDA is governed by RBI rules issued in September 2013. These account users are permitted more than four withdrawals in a month, at the bank's discretion, as long as the bank does not charge for it.


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