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SBI To Introduce ATM Withdrawals Via Mobile Wallet From June 1; Rs 25 Service Charge On Each Transaction

The Logical Indian Crew

May 11th, 2017

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Courtesy: Live Mint | The Hindu Business Line | Image Credit: Times of India

The State Bank of India (SBI) had announced that from 1 June 2017, among other things, all ATM withdrawals will be charged Rs 25 and above.

However, the new rule was a misprint by SBI and the charge is only applicable to ATM withdrawals using the bank’s mobile wallet – SBI Buddy.

The new rules that were previously ordered were:

All cash withdrawals through ATM will now be charged at Rs 25 per transaction. This rate will be for the first four transactions of a month. After the fourth transaction, the charge will be Rs 50 plus service tax per transaction at branch; Rs 20 plus service tax at other bank ATMs, and Rs 10 plus service tax for SBI ATMs.

Cash deposit through banking correspondent of up to Rs 10,000 will be charged at 0.25% of the value with a minimum of Rs 2 and maximum of Rs 8 plus service tax.

Cash withdrawal through banking correspondent of up to Rs. 2,000 (multiples of 100) will be charged at 2.5% of the transaction value (minimum of Rs 6) plus service tax.

IMPS fund transfer charges through internet banking/UPI/IUSSD will be Rs. 5 plus service tax for amounts of up to Rs. 1 lakh; Rs. 15 plus service tax for above Rs. 1 lakh and up to Rs. 2 lakh; and Rs. 25 plus service tax for above Rs. 2 lakh and up to Rs. 5 lakh.

Service charges for exchange of soiled/imperfect notes, up to 20 pieces and value of Rs. 5,000 will demand no charge. More than 20 pieces will invite Rs. 2 per piece on the entire tender plus service tax. For value above Rs. 5,000, Rs. 2 per piece or Rs. 5 per 1,000 plus service tax, whichever is higher on the entire order will be levied. For example, for 25 pieces of Rs. 500 that is equal to a value of Rs. 12,500, the charges will be Rs. 2 per piece (Rs 50 plus service tax) and Rs. 5 per Rs. 1,000 (Rs 62.50 plus service tax). Amount to be charged will be Rs.62.50 plus service tax.

Issue of a 10-leaf cheque book will now cost Rs. 30 plus service tax; 25-leaf book, Rs. 75 plus service tax and 50-leaf book at Rs. 150 plus service tax.

However, SBI denied media reports that it had increased service charge to Rs 25 on regular ATM transactions. “The service charge on cash withdrawal from ATMs has not been changed for normal savings accounts,” SBI MD (national banking) Rajnish Kumar told PTI.

“If a customer has money in SBI Buddy, our mobile wallet, he can now withdraw that money through ATMs. Also, now customer can deposit cash or withdraw cash through business correspondent (BC) from or into our mobile wallet. These facilities were not available earlier,” he added.

For those who use SBI’s mobile wallet, cash deposit of up to Rs 1000 through business correspondents will attract a service charge of 0.25% (minimum Rs 2 and maximum Rs 8) plus service tax. Cash withdrawals of up to Rs 2000 from SBI mobile wallet through business correspondents, will attract a service charge of 2.50% of the transaction value (minimum Rs 6) plus service tax.

The bank levies a service charge of 3% in addition to service tax using immediate payment service (IMPS) for fund transfer through SBI Buddy to bank account.

The new service charges will be effective from 1 June 2017 and a corrected circular will be issued soon, said Kumar.

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