After GST, India’s biggest lender State Bank of India (SBI) has revised service charges on ATM withdrawal for users of its mobile app “State Bank Buddy” and various other cash transactions.
Customers will have to pay more for banking services such as debit card, home loan processing fee, locker rentals, issuing of cheque books, cash handling charges, and SMS alerts would attract higher tax rates under GST.
The much-awaited Goods and Services Tax (GST) launched from July 1 and this changed the whole country’s transactions fate. The overall burden of these charges for SBI customers has increased further as a service tax of 15 per cent has been replaced with GST of 18 per cent.
What GST means to SBI customers?
SBI has said that Rs 25 plus GST will be charged for withdrawing money from an ATM through State Bank Buddy. If you transfer funds from app SBI Buddy to your savings bank account then you have to pay a charge of 3 per cent plus taxes, the public sector lender said in a release.
All normal saving bank accounts in a month will continue to get eight free ATM transactions (5 at SBI ATMs and 3 at ATMs of other banks) in metros and 10 free transactions in non-metros (5 at SBI ATMs and 5 at ATMs of other banks), SBI added.
SBI’s basic savings account is a limited-services bank account aimed at poorer sections of society to encourage them to start saving without any burden of charges or fees. This type of bank account comes with an ATM-cum-debit free of cost and no annual maintenance charges.
Here are some of the key changes:
Online fund transfer through IMPS or Immediate Payment Service will now be charged Rs. 5 plus tax for amounts of up to Rs. 1 lakh, Rs. 15 plus tax for above Rs. 1 lakh and up to Rs. 2 lakh, and Rs. 25 plus tax for above Rs. 2 lakh and up to Rs. 5 lakh.
Charges on ATM cards:
SBI said that issuance of new debit cards will be charged from June 1 and only the RuPay classic card will be issued for free.
Exchange of Soiled Notes:
If a customer wishes to exchange of more than 20 soiled notes or if the total value of soiled notes is above Rs. 5,000, SBI said it will charge Rs. 2 plus tax for every soiled note.
From June 1, a customer with a Basic Savings Bank Deposit will have to pay Rs. 30 plus GST of 18 per cent for a 10-leaf cheque-book, Rs. 75 with GST for 25-leaf cheque-book and Rs. 150 plus tax for a 50-leaf cheque-book.
“Banks are not in the position to absorb the increase in costs due to GST. It will be a small hike for customers. There will be an increase in costs for us except for the interest cost on deposits. Hence, banks will pass it on,” said a senior SBI official.