RBI Issues Circular On Levying Unfair Interest Charges On Customers

PSU Banks: Weightage in public sector banks rose to 3.4% in May 2021, highest in 15 months. The sector which was at the thirteenth spot a year ago, climbed to the ninth position in the allocation of mutual funds.

To ensure customers don’t face inconvenience due to the impact of the Covid-19 pandemic, State Bank of India (SBI) had introduced some measures.

SBI customers can now withdraw cash up to Rs 1 lakh per day through cheque and Rs 25,000 per day through using a withdrawal form along with a savings bank passbook. For third-party borrowers, monthly cash withdrawal has been capped at Rs 50,000 via cheques.

However, these facilities will be valid until September 30, 2021.

Meanwhile, several other changes have also been announced on SBI’s official website with respect to chequebooks, transfer and other non-financial transactions that will be applicable to the zero balance savings account or Basic Savings Bank Deposit (BSBD) account holders. These changes will come into effect from July 1, 2021.

Service charges applicable

The bank has revised the service charges for cash withdrawal at any SBI branch. Customers will be charged a service fee after 4 free cash withdrawal transactions every month. A fee of Rs 15 + GST per cash withdrawal transaction at the SBI branch or ATM will be charged from July 1. The first 4 transactions include both branch as well as ATM withdrawals.

These charges on cash withdrawal will be applicable at any home branch, SBI ATMs and non-SBI ATMs too.

Chequebook charges applicable

A total of 10 chequebooks would be provided free-of-cost to BSBD account holders in a financial year. But post this, the bank will charge a fee to issue any further of these.

A 10 leaf chequebook would cost you Rs 40 + GST while a 25 leaf chequebook will be priced at Rs 75 + GST. In case of an emergency, Rs 50 + GST for a 10 leaf chequebook or part thereof would be chargeable from July 1 this year.

Senior citizens

SBI, however, mentioned that senior citizens don’t need to pay any service charges for new cheque books.

Further, SBI informed that, “There would not be any charges on non-financial transactions by BSBD account holders at SBI and non-SBI bank branches. Transfer transactions will also be free at the branch and alternate channels for these account holders.”