State Bank of India or SBI, the country's biggest lender, has revised service charges on ATM withdrawal for users of its mobile app "State Bank Buddy," and various other cash transactions, effective June 1. After the much awaited launch of GST or goods and services tax from July 1, the overall burden of these charges for SBI customers has increased further as a service tax of 15 per cent has been replaced with GST of 18 per cent. SBI has said that Rs 25 plus GST will be levied for withdrawing money from an ATM through State Bank Buddy. If you transfer funds from app SBI Buddy to your savings bank account then you have to pay a charge of 3 per cent plus taxes, the public sector lender said in a release.
- SBI revises service charges on a variety of transactions
- Service tax of 15% replaced with GST tax rate of 18%
- Rs. 25 plus to be levied on ATM withdrawal via State Bank Buddy
However, all normal saving bank accounts in a month will continue to get eight free ATM transactions (5 at SBI ATMs and 3 at ATMs of other banks) in metros and 10 free transactions in non-metros (5 at SBI ATMs and 5 at ATMs of other banks), SBI added. If you exceed the permissible limit, a charge of Rs 20 plus taxes will be levied for each additional withdrawal.
(Also read: How to avoid fine for non-maintenance of minimum balance in SBI savings account)
The limit of four ATM withdrawals per month only applies to the Basic Savings Banks Deposit Accounts, SBI further said. SBI's basic savings account is a limited-services bank account aimed at poorer sections of society to encourage them to start saving without any burden of charges or fees. This type of bank account comes with an ATM-cum-debit free of cost and no annual maintenance charges. A basic savings bank deposit account holder is not eligible to open any other savings bank account.
SBI has also revised service charges on various cash transactions for its customers, effective June 1. Here are some of the other key changes:
Online fund transfer through IMPS or Immediate Payment Service will now be charged Rs. 5 plus tax for amounts of up to Rs. 1 lakh, Rs. 15 plus tax for above Rs. 1 lakh and up to Rs. 2 lakh, and Rs. 25 plus tax for above Rs. 2 lakh and up to Rs. 5 lakh.
Exchange of soiled notes
If a customer wishes to exchange of more than 20 soiled notes or if the total value of soiled notes is above Rs. 5,000, SBI said it will charge Rs. 2 plus tax for every soiled note.
From June 1, a customer with a Basic Savings Bank Deposit will have to pay Rs. 30 plus GST of 18 per cent for a 10-leaf cheque book, Rs. 75 with GST for 25-leaf cheque book and Rs. 150 plus tax for a 50-leaf cheque book.
Charges on ATM cards
SBI said that issuance of new debit cards will be charged from June 1 and only the RuPay classic card will be issued for free.