Finance Ministry

Bank charges levied by SBI beyond free transaction limits based on monthly average balance

Bank charges levied by SBI beyond free transaction limits based on monthly average balance(MAB) in savings bank account. No limit for MAB of Rs. 1 Lakhs

Press Information Bureau
Government of India
Ministry of Finance

18-July-2017

Imposition of charges on frequent banking 

State Bank of India (SBI) has informed that the charges are levied by them beyond number of free transactions are as under:-

Monthly Average Balance in Savings Bank

Monthly Limit on Number of free Debit transactions

Branch SBI ATMs Other Bank ATMs
6 Metros Other Centres
<Rs.1000 2 5 3 5
>1000 upto Rs.25,000 2 5 3 5
>25,000 upto Rs.50,000 10  

 

Unlimited

3 5
>50,000 upto Rs.1,00,000 15 3 5
>1,00,000 Unlimited Unlimited

SBI has informed that the charges for cash withdrawal at branches beyond the permitted free withdrawals are Rs.50/- + Goods and Service Tax  (GST) per transaction. With substantial investment in infrastructure and technology, cash outgo to other banks for ATM transactions and cost of servicing Pradhan Mantri Jan Dhan Yojana (PMJDY) / Basic Savings Bank Deposit (BSBD) /Financial Inclusion (FI) accounts with RUPay Debit Card, it becomes imperative for the Bank to find a way out to recover at least a part of the cost. The charges are levied for the cost involved in handling the transaction and the attendant work.

Further, SBI has informed that the charges being levied for cash withdrawals at ATMs beyond the permitted free withdrawals are as under:

  1. i)10/- + GST per transaction at SBI Bank ATMs and
  2. ii)20/- + GST at other Bank ATMs.         

This Government has received some complaints from public including Hon’ble Members of Parliament regarding to impose penalties on customers for not keeping minimum balance by banks. Reserve Bank of India (RBI) has informed that terms and conditions for operating a saving bank account including minimum balance requirements are decided by Boards of individual bank. These are not fixed by RBI.

This was stated by Shri Santosh Kumar Gangwar, Minister of State for Finance in written reply to a question in Rajya Sabha today.

***** 

DSM/SBS/KA

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