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SBI slap charges on cash transactions and penalty for non-maintenance of minimum balance

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New Delhi: Finally, State Bank of India (SBI) began imposing penalty for not maintaining a minimum balance in account.

From Today, SBI decided to impose penalty depending on the areas for not maintaining a minimum balance. Rs. 5, 000 is the minimum balance needed to be maintained in the bank accounts in metropolitan areas, Rs. 2, 000 in semi-urban areas and Rs. 1, 000 in rural areas. However, such penalties are not applicable on Jan Dhan accounts.

As per the new rules, bank will further levy charges of Rs. 50 if customer desires to make more than three cash transactions per month at its branch.

Earlier, Arundhati Bhattacharya, SBI Chairperson justified this new rules. She said that the move is to compensate for operational costs incurred while managing Jan Dhan accounts and operating ATMs.

It is to be mentioned that SBI was the only bank which does not imposed such restriction since it was removed in 2012.

After the demonetization, the rules of RBI for withdrawing cash from ATMs also changed. Earlier, there was no limit on the number of transactions from ATMs but now according to RBI directives, more than 3 transactions in metros and 5 in non-metros are chargeable.

According to the news published in Indian Express, talking about ATM charges, SBI chairperson added, “We are charging as people go to ATMs, withdraw cash and give it to somebody who in turn deposits it into the bank. This type of transaction involves a cost which is not known to public as bankers do not levy any charge on the customers.”

Five associate banks and BMB merged with SBI

Five associates and the Bharatiya Mahila Bank became the part of the State Bank of India (SBI) today. With this step, country’s largest bank would be among the top 50 banks in the world.

State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Travancore (SBT) and Bharatiya Mahila Bank (BMB) merged with SBI with effect from 1st April.