From 1 July, the country’s largest lender State Bank of India (SBI) will levy charges for cash withdrawal beyond four free transactions in a month from customers holding the basic savings bank deposit (BSBD) accounts. The bank will levy charges for cheque book beyond 10 leaves a year.
As per the revision in service charges for BSBD accounts, SBI will levy charges ranging from Rs 15 to Rs 75 for the “additional value added services” with effect from 1 July 2021.
Non-financial transactions and transfer transactions will be free of cost at SBI branches, ATMs and cash-dispensing machines (CDM) for BSBD account holders.
Cash withdrawal from bank, cheque book charges of SBI
The SBI says it will charge Rs 15 plus GST per cash withdrawal for transactions at bank branches, SBI ATMs or from other bank’s ATMs beyond 4 free cash withdrawals. “Charges will be recovered beyond 4 free cash withdrawal transactions (including ATM and branch),” SBI said.
With respect to cheque book services, first 10 cheque leaves of SBI will be free of cost in a financial year. Thereafter, 10 leaf cheque book will be levied Rs 40 plus GST; 25 leaf cheque book at Rs 75 plus GST and emergency cheque book will attract a charge of Rs 50 plus GST for 10 leaves or part thereof, the SBI said.
“However, senior citizen customers are exempted (on cheque book services),” said SBI.
Basic savings bank deposits or BSBD accounts can be opened by any individual after valid KYC documentation. Such accounts help people to start saving without any burden of charges or fees and are primarily aimed at poorer sections of society.
However, charges on such accounts seem to be rising. A recent study by IIT-Bombay revealed that the public lender earned over Rs 300 crore through service charges on nearly 12 crore BSBD account holders during 2015-20.
The study further observed that SBI levying a charge of Rs 17.70 for every debit transaction beyond four on BSBD account holders was not “reasonable”. Compared to SBI, the second-largest public sector lender Punjab National Bank (PNB) collected Rs 9.9 crore from 3.9 crore BSBD accounts during the same period.