SBI to charge 18% GST on exhaustion of free ATM withdrawals

New Delhi, September 18: State Bank of India (SBI) is set to charge customers with 18% GST for each ATM transaction post exhaustion of free ATM withdrawals. In April, the country’s largest bank reintroduced charges on non-maintenance of monthly average balance (MAB) after a gap of five years.

“We have received feedback from our customers on the issue and we are reviewing those. The bank will take into account those and make an informed decision,” the banks managing director (national banking group) Rajnish Kumar said.

“We will internally debate whether any moderation for certain categories of customers like senior citizens and students needs to be done anywhere. The charges are never cast in iron,” Kumar added.

He further said, on the one hand banks are writing off loans of big corporates, on the other hand they are increasing charges on their customers. This is unfair and unions have requested the finance minister for his intervention.

As per the list of revised charges of SBI, failure to maintain monthly average balance in accounts will attract penalty of up to Rs 100 plus goods and services tax (GST). In metropolitan areas, there will be a charge of Rs 100 plus GST, if the balance falls below 75 percent of the MAB of Rs 5,000.

If the shortfall is 50 per cent or less of the MAB, then the bank will charge Rs 50 plus GST. In rural areas, the monthly average balance requirement has been kept at Rs 1,000. Any shortfall in maintaining minimum balance in rural areas can attract penalty in the range of Rs 20 to Rs 50 plus GST.