People using ATM for withdrawing money or transferring money to another account holder are somewhat very common these days. It is another way of handling regular matters by using the liquid money. This is a convenient way of carrying your card in your wallet and also it is much safer than raw cash. But every card has its limit on Withdrawal and also how much can you withdraw with the card. Both debit and credit card are used following the rules. Each bank has its own specific rules for ATM cards and their usage.
SBI ATM Charge Revision
SBI is the country’s largest lender bank. There are many account holders, and all of them have obtained various advantages for holding ATM cards of SBI. But time to time some changes in the rules are necessary. There are few changes in the charge for Withdrawal money through ATM did recently. This came to be effective from June 1st, 2017. ATM users who have SBI Buddy Wallet app on their smartphones for quick fund transfer and other payment means can only be considered falling under this rule.
Under this new revision of SBI ATM Withdrawal, the service charge of Rs 25 is applicable upon every cash Withdrawal for people using SBI Buddy App and Withdrawal money from ATM. But people holding RuPay Classic cards will not be charged any of such fee since their service will be free of cost.
There is also a limit for withdrawing for people using ATM with SBI Buddy Wallet. After four times of Withdrawal, the service charge will be accountable of Rs 50 with the service tax for the transaction from the branch. The same will be charged Rs 20 and the service tax if the transaction is performed through any ATM other than SBI and Rs 10 with service tax at the SBI ATM.
People having normal savings account in State Bank of India will not be charged with such extra amount as revised under this new rule of ATP usage. They still can Withdrawal money from ATM without any charges up to 8 transactions in the metro cities and up to 10 transactions in non-metro cities. In both cases, from SBI ATM you will get up to 5 free transactions using ATM card.
The limited Withdrawal of cash up to 4 times of ATM card usage is applicable for Basic Savings Banks Deposit Accounts of SBI. This account is only valid for people from the poor section of this country. This account was initiated with the aim that even people under poor level can have a savings account. SBI had announced that people holding this account would be able to get an ATM cum Debit card. There is no extra cost and also maintenance charges applicable for the ATM of this account holders. But there is a hindrance. People holding this account cannot open any other savings account in SBI.
SBI Cash Deposit Charges
SBI has announced some charges upon cash deposit also. People trying to deposit Rs 10000 in multiples of Rs 100 will be charged 0.25% of the value with the service tax from Rs 2 to 8 through banking correspondence. Then if you try to withdraw cash through banking correspondence, there is also a charge applicable. In case you are trying to withdraw cash as low of Rs 2000 with multiple of Rs 100, you will be charged 2.50% of the transaction value with the service tax starting from Rs 6.
Read : Intrabank Beneficiary to SBI
Charges On Online Transfer
State Bank of India has revised charges for fund transfer as well up to Rs 1000 using IMPS or Immediate Payment Service. This was done for promoting small transactions. SBI is charging Rs 5 only with the service tax for fund transfer using IMPS up to Rs 1000. The convenience of using IMPS which is an internet interbank electronic fund transfer service that can be easily handled by just using mobile phones and also internet banking is just unavoidable.
The main purpose of this decision was to promote small-sized transactions using IMPS. This new charge was revised after considering the new rules under GST or Goods and Service Tax regime. For fund transfer using IMPS, charges will be Rs 5 along with GST from a number of Rs 1000 till Rs 1 lakh.
This charge will go up to Rs 15 for transactions above Rs 1 lakh to Rs 2 lakh. An amount of Rs 25 is charged for fund transfer of amount above Rs 2 lakh to Rs 5 lakh. In this case, you should remember that 18% of GST rate is going to applicable for any financial transactions.
Charge On Soiled Notes
In case a customer is trying to exchange soiled notes for Withdrawal money, SBI will charge no extra amount for exchanging the notes till 20 pieces. The amount has to be limited Rs 5000. If the customer is trying to exchange more than that amount and more than 20 pieces of soiled notes, then a charge is applicable. Here SBI will charge Rs 2 and the service tax per piece of soiled not above the primary 20 pieces without any charge.
You have to consider the amount exchanged first with the soiled notes. Although it is Rs 2 per piece of notes but Rs 5 will be charged for Rs 1000 of soiled notes. For example, if you are exchanging 25 pieces of soiled notes that has the value of Rs 500 each then it will be charged with Rs 2 and the service tax. In case the soiled notes have the value of Rs 1000 then it will be charged with Rs 5 with the service tax.
Charges On Cheque Books
SBI has also announced for charges revised under new rules for customers holding cheque books. People having a Basic Savings Bank Deposit will need to pay Rs 30 with the service tax for issuing a 10-leaf cheque book. They have to pay Rs 75 with the service tax for issuing 25-leaf cheque book, and in case they have issued a 50-leaf cheque book, the charges of Rs 150 along with the service tax is applicable for them.
Charges For ATM Cards
SBI has announced for charges applicable for issuing ATM cards which will be effective after June 1st, 2017. Only customers having RuPay cards will not be charged with any extra amount. It will be free of charge.
Charges On Cash Withdrawal
Generally, people holding a Basic Savings Bank Deposit will enjoy up to four free cash withdrawals which will include cash withdrawals using ATM cards in one month. But after withdrawing money for four times, they will be charged with Rs 50 along with service tax from the SBI branch and Rs 20 along with the service tax from the other bank ATMs.
Various Other Charges And Hikes
SBI did lower the lending rates, but there is also an announcement that the hike in charges is to be followed for those not maintaining a minimum balance in SBI account. In the meantime to cope with liquidity and low-cost deposits, SBI has cut down its base rate by 15 basis points which are now standing at 9.10% which is effective from 1st April 2017. This was originally 9.25% before this announcement is processed.
In this case, you should know that the marginal cost-based lending rate or MCLR in short of the State Bank of India has retained its past track. This means that the MCLR rate is still at 7.95% when the three-year rate is still 8.15%.
Changes In MAB
The monthly average balance or MAB has been increased to the amount of Rs 5000 for all the branches of SBI in the metro cities. All savings bank account holders must retain that MAB to avoid penalty. Different banks charge different penalty amount. But according to SBI website(https://www.sbi.co.in/), this particular penalty is going to be charged with Rs 20 in the branches of rural areas and Rs 100 in metro cities.
You will be shocked after knowing that this Average Monthly Balance in SBI was Rs 500 only for people without any cheque facility and Rs 1000 for people having cheque facility before 31st March 2017 across the entire country. But in the latest announcement, SBI has decided to fix these MABs differently for branches in metro cities, urban areas, semi-urban area and rural areas from the beginning of this fiscal year.
Following the new rules of MAB, this amount is fixed to be Rs 5000 in branches of metro cities with the penalty rate between Rs 50 to Rs 100. Branches in the urban and semi-urban areas are going to allow MAB of Rs 3000 and 2000 depending on different situations. In branches of rural areas, this MAB is fixed to be Rs 1000 with the penalty rate charged between Rs 20 to 50. These are all effective from April 1st, 2017.
The announcement of lowered lending rates and the increase of charges for different services of SBI have surely attracted much attention toward it. These two decisions announced one after another had ignited a rate cutting war among other financial institutes who have also practiced different hiking charges. These decisions have definitely made an impact on the account holders of SBI throughout the country.