look news india
Very important and alarming news has come to light for crores of account holders of the country’s largest government bank, State Bank of India (SBI). The bank has revised the service charges related to its Basic Savings Bank Deposit (BSBD) and cash withdrawals from branches. Under the new rules, from October 1, if an account holder withdraws cash more than the prescribed free limit, he will have to pay additional charges out of pocket on every additional transaction. This change made by the bank will have a direct impact on crores of customers who make cash transactions several times a month through ATM, bank branch or Aadhaar payment system.
New rules will come into effect from October 1: What has changed?
According to the official notification released by SBI, the bank is going to implement revised cash withdrawal charges from October 1. Under the new provisions, customers will get a total of 4 cash withdrawals in a calendar month absolutely free. The bank will charge ₹15 plus applicable Goods and Services Tax (GST) as service charge on every cash withdrawal made after these four free transactions. Earlier there was some difference in the calculation of digital transactions and cash transactions, but now the bank has decided to strictly enforce the cash withdrawal limit.
Through which means the limit of 4 rupees will be counted for withdrawing money?
The bank has clarified that the count of 4 free cash withdrawals of the month is not limited to the bank branch only. This will include cash withdrawals made through various means:
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SBI’s own ATMs: Withdrawal of money from any ATM of State Bank.
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ATMs of other banks: Cash withdrawals made from ATMs of other banks.
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Bank Branch (Branch Channel): Withdraw cash from the counter in any branch of SBI through withdrawal slip or cheque.
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AEPS Transaction: Withdraw cash from Bank Mitra or Customer Service Center (CSP) through Aadhaar enabled payment system.
As soon as cash withdrawal is completed 4 times in a month combining all these channels, ₹15 + GST will be deducted directly from the 5th transaction.
Digital transactions will remain completely free
Along with setting limits on cash transactions, State Bank of India has clarified that to promote digital banking, all online mediums have been kept free as before. There will be no restrictions or additional charges of any kind on fund transfers and online payments made through UPI, Internet Banking, YONO App, NEFT and RTGS. The objective of the bank is to reduce the cost of cash transactions and encourage more and more customers towards digital banking.
Regular Savings Account vs BSBD Account Holders: Who Will Lose?
This new amendment has been issued primarily for Basic Savings Bank Deposit (BSBD) accounts, which are colloquially called ‘zero balance accounts’. There is no obligation to maintain minimum balance in these accounts and customers are issued a basic RuPay debit card. However, for those who are Regular Savings Bank Account Holders, the ATM withdrawal rules are as per the average monthly balance (AMB) of their account and the limit of 5 to 8 free transactions depending on the metro/non-metro cities. However, the Bank’s standard rates apply even on normal accounts for frequent cash withdrawals from the branch.
What should customers do to avoid additional charges?
To avoid additional charges from October 1, account holders are advised to make some changes in their banking practices:
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Get into the habit of lump sum withdrawal: Instead of withdrawing ₹500 or ₹1,000 multiple times a month, estimate your household expenses for the entire month and withdraw the required cash in one or two visits.
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Use UPI for shops and bill payments: Use Google Pay, PhonePe, Paytm or BHIM UPI instead of cash for everyday shopping, vegetable market, grocery and bill payments, which are completely free.
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Adopt YONO and Net Banking: Instead of visiting the branch to transfer funds, check bank statements and balance, use mobile apps and internet banking.