State Bank Of India (SBI) has made it compulsory for all the account holders to maintain a minimum account balance. State Bank Of India said from April 1 they will be charging a penalty for all the account holders not maintaining a minimum account balance.
State Bank of India(SBI) has raised cash transaction charges on deposits and withdrawals. This SBI’s move will lead to costlier banking.
Maintaining Minimum Balance
Rs. 5000 to be maintained in metropolitan areas, Urban Areas – Rs. 3000, Semi-Urban Areas – Rs. 2000, Rural Areas- Rs. 10000. The Penalties will be effective from April 1.
These charges which will be effective from April 1 are based on the difference between the minimum balance required and the shortfall. According to the new State Bank Of India (SBI) Notification of new charges, if the shortfall is greater than 75 percent in metropolitan areas then the charges would be Rs. 100 + Service tax. However, Rs. 75+Service Tax will be charged if the shortfall is between 50-75 percent. Rs. 50+Service Tax would be charged for below 50 per cent shortfall. Rs. 20-50+Service Tax will be the penalty for non-maintenance of minimum balance in the rural areas. Cash transaction charges for current account holders can be Rs. 20,000. The State Bank Of India’s new policy also included that there will be no charges on withdrawals. from SBI ATMs. if the account holder maintains a minimum balance of Rs. 25,000 on withdrawals. To withdraw cash from other bank’s ATMs, the account holders will have to maintain a minimum balance of Rs. 1 Lakh in order to avoid withdrawal charges.
From April 1, 2017, the public sector lender would also renew. There will be a Rs. 50 charge for people carrying out more than three cash transactions at its branch within a month. However, these charges are currently applicable. No upper limit has been set on the amount of cash transacted.
State Bank Of India’s official said that these cash transaction charges are already applicable at the branches. However, the same charges have been renewed for the coming financial year from April 1, 2017. The customers will not have to visit the branch often as the State Bank Of India (SBI) provides 10 free withdrawals from ATMs monthly.