Starting July 1, the State Bank of India (SBI) will start implementing a new set of rules which will levy certain charges on cash withdrawals from its Automated Teller Machines (ATMs) as well as its branches after the initial four cash withdrawals. These new changes will primarily be implemented on Basic Savings Bank Deposit (BSBD) account holders. There will also be a wide range of other changes to follow. Here are the changes that will be taking place.
BSBD Accounts facing Cash Withdrawal Charges: Customers who hold BSBD accounts will be the primary target of these new changes, one of which is the charges levied by SBI for cash withdrawals from the lender’s ATMs and bank branches. A BSBD account is essentially a zero-balance or minimum balance account that is provided as a savings account that will offer certain minimum facilities, free of charge.
As per the revision of the service charges for these BSBD accounts, SBI will levy charges ranging from Rs 15 to Rs 75 for additional value-added services after the first four free withdrawals. However, non-financial transactions and transfer transactions will remain free of cost, be it as the branches, ATMs or even at cash dispensing machines (CDMs).
Cheque Book Charges to come: With respect to the usage of cheque books and the accompanying services, the holder is eligible for the first 10 cheque leaves to be provided free of charge in a given financial year. Following these initial 10, the next 10-leaf cheque book will have a charge of Rs 40 plus GST levied against it, 25-leaf cheque books will carry a charge of Rs 75 plus GST and emergency cheque book will attract a charge of Rs 50 plus GST for 10 leaves as per the lender’s new changes.
Senior citizens are the exception to the rule and they will not be levied any charges in the case of cheque books and additional services.
The Impact of these Changes by SBI
These changes and additional charges will impact the BSBD account holders the most and given that these types of accounts are meant for the marginalised sections of society, it will have a drastic impact on their banking access. Zero-balance or minimum-balance accounts were established for the purpose of encouraging the marginalised and economically poorer sections of society to invest and save their money.
The new rules and regulations impede the ability of these account holders to readily access their savings and conduct financial transactions. SBI has recently also increased the ceiling for cash withdrawals by its customers at non-home branches. The lender has also hiked the prices for cash withdrawals for customers using cheques, savings bank passbooks and third-party withdrawals.