After 5 years, SBI has decided to raise charges on various transactions through ATMs. Some SBI customers have taken social networks to protest hikes and asked for a "no-transaction day" on April 6. SBI has implemented a new list of rules for millions of customers across India. From the introduction of an increased minimum balance to several new transaction charges. The new changes have been implemented from April 1. Even customers of the six new banks merged with SBI will have to follow this new list of rules. With the central bank introducing these new charges, there is a high probability that other private sector banks will continue to demand and increase their bank charges.
The move came after private banks such as ICICI, HDFC and Axis Bank announced similar changes. Banks such as HDFC Bank, ICICI Bank and Axis Bank began to charge a minimum amount of Rs 150 per transaction for cash deposits and withdrawals for more than four transactions in one month.These charges would apply to savings as well as salary accounts effective from last month.
Changes that have been implemented from April 1:
The monthly average balance requirement (MAB) has increased to Rs 5,000 for branches in six metros. SBI savings account holders have to keep the monthly balance or they will invite a fine of Rs 20 (rural branches) to Rs 100 in (subway cities), according to the SBI website. Until March 31, the average monthly balance (MAB) for a savings account was Rs 500 with no cheque book facility and Rs 1,000 with cheque book over the country. India's largest bank has decided to set the separate MABs for "metropolitan", "urban", "semi-urban" and "rural" areas since the beginning of next year. Penality for not keeping the minimum balance will be between Rs 50 and Rs 100.
For urban and semi-urban branches, the MAB has been set at Rs 3,000 and Rs 2,000 respectively. In the case of rural branches, the minimum balance has been Set at 1000 rupees. MAB default will attract a penalty ranging from Rs 20 to Rs 50. These new rates in effect since 1 April are not applicable to Surabhi, Basic Savings Bank and PM Jan Dhan Yojana accounts. The bank has increased the rental of lockers and reduced the number of use of free lockers in a year. After usage of 12 times, the customer has to pay Rs 100 plus applicable service tax for Visiting his locker. With regard to cheque books, for a current account holder, the first 50 free checks in an financial year. Thereafter, it will cost Rs 3 per leaf. Among other various charges that the bank has raised. If one keeps Rs 25,000 in his SBI savings account, then the customer can use ATM unlimited number of time. However, ATM usage charges allowed 5 times will attract charges as prescribed by RBI.