All ATM withdrawals not chargeable, SBI clarifies after furore

Owen Stevens
May 12, 2017

State Bank of India on Thursday clarified reports that had said all ATM withdrawals would be charged Rs 25.

In an emailed statement to NDTV Profit, an SBI spokesperson clarified that a limit of four ATM withdrawals per month only applied to the Basic Savings Banks deposit account.

By evening, the bank posted a fresh circular on its website, specifically mentioning that the Rs 25-per-transaction service charge was applicable only to State Bank Buddy customers.

Thomas Isaac has said that the move by the SBI to increase service charge for transactions is a challenge to the public.

State Bank of India (SBI) has made a decision to allow cash withdrawals from its wallet - SBI Buddy - through automated teller machines from June 1, subject to a charge of Rs. 25 per transaction for such withdrawals, irrespective of the amount. While a segment of the notification specifies extra charges for every ATM transaction, another segment mentions that four withdrawals in a month including ATM withdrawals would be free of charges.

"All Normal Saving Bank accounts will continue to get 8 free ATM transactions (5 SBI ATMs + 3 other bank ATMs) in Metros and 10 free transactions in Non Metro (SBI ATM + 5 Other Bank ATMs) free apart from the bank transaction", SBI said.

- The bank also said now customer can deposit cash or withdraw cash through business correspondent (BC) from or into our mobile wallet. As for issue of ATM card, only RuPay classic card will be issued free of cost. The circular titled "Revision in service charges additions/ modifications: wef 01/06/2017" said Rs 25 per transaction would apply on cash out through ATM.

For cash deposit of up to Rs1,000 into its mobile wallet through business correspondents, the bank will levy a service charge of 0.25% (minimum Rs2 and maximum Rs8) plus service tax.

Besides, SBI has also levied a special charge for uploading money into their digital wallet, using "Business Correspondents", which are a type of agents who are authorized to carry SBI's few banking transactions, on their behalf. Ever since the demonetisation began, the Centre has been bullying people.

Another angry SBI customer from Kottayam said barring the lone Bharatiya Janata Party (BJP) legislator in the 141-member Kerala Assembly, all others had strongly opposed the merger and passed a resolution to this effect.

Of the 880 SBT branches in Kerala, more than 400 were closed after the merger.

Other reports by VgToday

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