As the biggest lender of the country, State Bank of India (SBI) plays a leading role behind any major change in financial services. This bank has revised service charges on several things like cash transactions, ATM withdrawal for users of State Bank Buddy app effective June 1.
Service charges & GST
SBI customers get ever-increasing burden due to these revised service charges subsequent to the Goods and Services Tax (GST) effective from July 1. The service tax for the financial service is increased from 15% to 18% as per new GST. Users of State Bank Buddy mobile app have to pay Rs. 25 when they withdraw money from ATM using this app. If they transfer funds from their app to their savings bank account, then they have to pay 3% charge plus taxes.
ATM transaction limitations
On the other hand, every normal saving bank account holder does not have to pay any service charge to get 8 free ATM transactions in terms of 5 at SBI ATMs and 3 at other bank ATMs in metros and 10 free ATM transactions in terms of 5 at SBI ATMs and 5 at other bank ATMs in non-metros. You have to pay a charge of Rs 20 plus taxes for every withdrawal after the permissible limit.
The basic savings banks deposit accounts only come under the limit of 4 ATM withdrawals per month. As a limited services bank account, SBI’s basic savings account is aimed at poor section of the society for encouraging them to save money without any fee or charges. This bank account comes with an excellent facility namely ATM-cum-debit free of cost and no charge for annual maintenance.
If you have a basic savings bank account in SBI, then you are not eligible to open any other savings bank account. SBI has revealed charges for other transactions like online transfers through IMPS and exchange of soiled notes.