Ground Report | New Delhi: How expensive is it to withdraw; Savings account holders in the country’s largest government bank ‘The State Bank of India’ will now have to pay a fee for withdrawing money more than four times. According to news agency PTI, ‘Basic Savings Bank Deposit Account’ holders will be able to do free transactions only four times in their account every month.
How expensive is it to withdraw money
In addition to the 10-page checkbook, these account holders will have to pay separate money for that if they need more checks. State Bank of India has put these services in the category of ‘Additional Value Added Services’ and for this, customers will be charged from Rs 15 to Rs 75.
The facility of non-financial transactions and sending or receiving money will be available free of cost at bank branches, ATMs, CDMs (Cash Dispensing Machines) for savings account holders. SBI has said that cash withdrawal can be done free of cost only four times from bank branches, SBI or ATMs of any other bank, but after that Rs 15 (plus GST) will be charged for cash withdrawal from the fifth time.
A ten-page checkbook will be given free of cost in a financial year and thereafter payment of Rs.40 (and GST) for issuance of a ten-page check book and Rs.75 (and GST) for a 25-page checkbook will be required. In case of emergency, a fee of Rs 50 (plus GST) has been fixed for a ten-page checkbook. However, the State Bank of India has said that senior citizens will get checkbook facility free of cost.
Basic Savings Bank Deposit Account is a simple savings account that can be opened by any individual with the help of valid KYC documents. Such bank accounts are opened by those sections of the society who are encouraged to save money without any expenditure. (How expensive is it to withdraw)
In the same year, a study by IIT Mumbai revealed that State Bank of India collected Rs 300 crore in the name of service charge from about 12 crore account holders of ‘Basic Savings Bank Deposit Account’ during the period 2015-20. It was said in the study that it does not seem reasonable to charge Rs 17.70 from the account holders of the Basic Savings Bank Deposit account every time the money is withdrawn.
It was also revealed in the same study that Punjab National Bank, India’s second-largest public sector bank, took Rs 9.9 crore in the name of service charge from 3.9 crore account holders of Basic Savings Bank deposit account during this period. The decision to levy service charges on the accounts of Basic Savings Bank Deposit Account is taken as per the guidelines of the Reserve Bank of India.