SBI imposes limits on free cash withdrawal, cheques for basic account customers

Total nearly 12 crore BSBDA customers will be affected by these new rules

SBI imposes limits on free cash withdrawal, cheques for basic account customers
In 2019-20 banks reported ATM-debit card, credit card and internet banking related frauds amounting to Rs 244 crore.

Are you a State Bank of India (SBI) customer? Do you have a Basic Savings Bank Deposit Small Account (BSBDSA), popularly also known as zero balance account, in this bank? If the answer is yes, then watch out. India’s biggest bank is going to change rules and raise charges including cash withdrawal that will be applicable from 1 July, 2021.

BSBDS account

These accounts are ‘primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees.’ Any individual above 18 years even who do not have officially valid KYC documents can open this account.

There is no requirement of minimum balance amount for these customers but there are a few restrictions in the operation of the account. BSBDS accounts can, however, be converted to a regular savings account.

SBI has the largest customer base of around 50 crore and nearly 12 crore of them are BSBDA customers.

Cash withdrawal rules

Under the new rules SBI will allow BSBDS account holders only four free cash withdrawals including ATMs (SBI and Non-SBI) and bank branches in every month.

After the free limit, SBI will charge Rs 15 (GST extra) for every transaction.

Cheque book charges

According to the new rule, a total of 10 cheques will be free in a financial year for BSBDS account holders.

After that, account holders will have to pay Rs 40 and Rs 75 (excluding GST) for books containing 10 and 25 cheques respectively.

The cost of an emergency cheque book with 10 leaves will be Rs 50 (excluding GST). New cheque book service charges would not be applicable for senior citizens.

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