The State Bank of India on Thursday denied reports that it has increased service charges to Rs 25 on regular ATM transactions amid public outcry. The reports had said that the largest lender State Bank of India will charge Rs 20 plus service charge on the the fifth ATM withdrawal. However. SBI denied any said charge and clarified on the news. It said, “the service charge on cash withdrawal from ATMs has not been changed for normal savings accounts.” On the media reports about the bank hiking ATM charges to Rs 25, SBI MD (national banking) Rajnish Kumar said that cash withdrawals from ATMs has not been changed for normal savings accounts and that there was some errors in the circular earlier.
Here is what it actually meant
– The bank has introduced new facility that would enable withdrawal of cash through ATMs using the bank’s mobile wallet
-The transaction is cash withdrawal from State Bank Buddy using ATM. Rs 25 per transaction is charged for withdrawing from State Bank Buddy through ATMs.
– Limit of 4 ATM withdrawals in a month only applies to the Basic Savings Banks deposit account. All Normal Saving Bank accounts will continue to get 8 free ATM transactions (5 SBI ATMs + 3 other bank ATMs) in Metros & 10 free transactions in non-metro (SBI ATM + 5 Other Bank ATMs) free apart from the bank transaction
– The bank also said now customer can deposit cash or withdraw cash through business correspondent (BC) from or into our mobile wallet. These facilities were not available earlier
– For cash deposit of up to Rs 1,000 into its mobile wallet through business correspondents, the bank will levy a service charge of 0.25 per cent (minimum Rs 2 and maximum Rs 8) plus service tax
– For cash withdrawal of up to Rs 2,000 from SBI Buddy through business correspondents, the service charges will be 2.50 per cent of the transaction value (minimum of Rs 6) in addition to service tax. The service charges will be effective from June 1, 2017
– The bank levies a service charge of 3 per cent plus service tax using immediate payment service (IMPS) for fund transfer through SBI Buddy to bank account