On Thursday, the customers of State Bank of India went in a tizzy after a circular published on its website, which stated that beyond every four ATM withdrawals, the bank would charge Rs 25.
However, when Business Today contacted SBI, an official on condition of anonymity clarified that the notification was specifically for SBI mobile wallet (called Buddy) users.
Soon after, the SBI published a new notification addressing the confusion the first notification had created.
According to the new notification, with effect from June 1, on basic savings banks deposit accounts (BSBDA), SBI will levy charges on withdrawals at branches and ATMs beyond the four free transactions.
BSBDA is a zero balance savings account that serves the primary need of customers with free ATM card, monthly statement, and cheque book.
Following are the details with new modifications which the country's biggest lender will bring into effect from June.
Four free transactions:
A customer will have to pay a charge of Rs 50 after four free transactions in case he/she withdraws cash from the branch.
If customers are withdrawing cash beyond the free limit from other banks' ATMs, they will have to pay Rs 20 plus service tax. However, in case of withdrawing money from an SBI ATM then, they have to pay Rs 10 with service tax.
"All Normal Saving Bank accounts will continue to get 8 free ATM transactions (5 SBI ATMs + 3 other bank ATMs) in Metros and 10 free transactions in Non Metro (SBI ATM + 5 Other Bank ATMs) free apart from the bank transaction," SBI said.
Cheque book charges for BSBDA
If a BSBDA customer wants to issue a cheque book, w.e.f June 1, he/she will have to pay Rs 30 plus service tax for a 10 leaf cheque book, Rs 75 with service tax for 25 leaf cheque book and Rs 150 plus service tax for a 50 leaf cheque book.
SBI Buddy Wallet
Meanwhile, the SBI has introduced an ATM withdrawal facility for its Buddy e-wallet users . The facility is available against a withdrawal fee of Rs 25 per transaction.
Cash withdrawal through Business Correspondent (BC) up to Rs 2000 in multiples of Rs 100 will be charged Rs 2.50 percent of the transaction value with a minimum of Rs 6.
Cash deposit through BC of up to Rs 10,000 (in multiples of 100) would be charged at 0.25 per cent of the value with a minimum of Rs 2 and maximum of Rs 8 plus service tax.
Customers also have to pay charges over exchanging of old and sullied notes above Rs 5,000.
The bank will charge Rs 2 and soiled notes worth above Rs 5000 will be charged Rs 2 or Rs 5 per Rs 1000, whichever is higher.
IMPS fund transfer
Immediate Payment Service (IMPS) refers to an instant interbank electronic fund transfer service through mobile phones.
Now, according to new rules, IMPS fund transfer through internet banking/ mobile banking /UPI/USSD will be charged at Rs 5 up to Rs 1 lakh.
IMPS transactions from Rs 1 lakh - Rs 2 lakh will be charged at Rs 15 and above Rs 2 lakh will cost Rs 25.