SBI to levy cash transaction charges after 3 withdrawals

After private sector lenders, now government-owned banks have decided to levy cash handling charges on transactions above a specified limit. The move is in line with the government’s decision to promote digital transactions.

State Bank of India is planning to impose such charges from April 1, according to top sources. SBI will charge Rs 50 per transaction after three transactions from its home branch starting April 1.

The levy will be imposed on saving bank accounts. On current accounts, transactions of Rs 25,000 a day will be free, beyond which the bank will charge Rs 50 per transaction.

Sources said that ATM usage charges are also likely to be revised. Currently, five ATM withdrawals are free. After that a customer has to pay Rs 20 per ATM withdrawal.

According to banking officials, since interest rates of banks have become very competitive, the lenders have to resort to increased fees.

Saving accounts

Last year, SBI had introduced cash handling charges on transactions above Rs 50,000 from saving accounts. But these charges were kept in abeyance following demonetisation which resulted in shortage of cash after November 8.

But since Wednesday, banks have themselves started to levy such charges. Private sector ICICI Bank, HDFC Bank, HSBC and Axis Bank have already informed their customers about the resumption of transaction charges.

ICICI Bank and HDFC Bank have stated that there will no change in terms of ATM withdrawals. While five transactions from ATMs of the bank and two transactions from other bank ATMs per month will be free, every financial transaction after that will be charged at Rs 20, while every non-financial transaction will be charged at Rs 8.50.