Source: News Bharati English06 Mar 2017 13:31:04
New Delhi, March 6: State Bank of India has introduced several new rules and revised the service charges on various transactions such as cash deposits and for failing to maintain monthly average balance in the accounts.
Notably, after the gap of five years, SBI has reintroduced the penalty on non-maintenance of minimum balance in accounts from April 1 of this year. According to this, if failed to maintain monthly average balance in accounts will attract penalty up to 100 rupees plus service tax.
In metropolitan areas, there will be a charge of 100 rupees plus service tax, if the balance falls below 75 percent of the minimum account balance of 5,000 rupees. If the shortfall is 50 percent or less of the balance, then the bank will charge 50 rupees and service tax. The charges and the average balance will vary according to the location of the bank. It is minimum in case of rural branches and it is up to 50 rupees plus service tax if balance falls below 1000 rupees.
A senior SBI official said the bank had suspended levying charges on breach of minimum balance requirements in 2012 to acquire new customers. The charges are now being reintroduced from April 1. The Reserve Bank has permitted banks to levy charges for breaching minimum balance limit.
The withdrawal of cash from ATMs will also attract a charge of up to Rs 20 if the number of transactions exceeds three from other bank's ATMs in a month and Rs 10 for more than five withdrawals from SBI ATMs. However, SBI will not levy any charge on withdrawals from its own ATMs if the balance exceeds Rs 25,000. In the case of other banks' ATM, there will be no charge if the balance exceeds Rs 1 lakh.
Now SBI will also charge 15 rupees for SMS alerts per quarter from debit card holders. However, there will be no charge for UPI and USSD transactions up to one thousand rupees.
Notably, the Reserve Bank of India has permitted banks to levy charges for breaching minimum balance limit. Therefore, from March 1, private banks such as HDFC, ICICI and Axis had started levying a minimum charge of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.