Yesterday, Social Media was abuzz with the news that India’s largest bank: SBI will now charge Rs 25 per ATM withdrawal of cash, irrespective of how many times ATM has been used.
This news stirred a hornet’s nest, because people assumed that if SBI starts levying such ridiculous charges, then all other banks will follow suit, and it would be a disaster.
However, SBI officials later came out, and clarified that this news is wrong. Infact, it was SBI’s fault, as their earlier notification regarding this change was ambiguous, it planted such confusion.
Attention Users of SBI Buddy- Rs 25 per ATM Withdrawal
SBI has launched a new scheme, wherein users of their digital wallet, called SBI Buddy would be able to withdraw their wallet cash from any ATM. However, a steep charge of Rs 25 per ATM withdrawal has been announced, which makes the whole exercise unworthy.
Why will a user withdraw cash using SBI Buddy, when he has the ATM? Yes, in case he forgets his ATM, then this can be used as an alternative method.
After the confusion, SBI MD (national banking) Rajnish Kumar had to release a press statement, wherein he said, “If a customer has money in SBI Buddy, our mobile wallet, he can now withdraw that money through ATMs. Also, now customer can deposit cash or withdraw cash through business correspondent (BC) from or into our mobile wallet. These facilities were not available earlier..”
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.
Hence, if a SBI customer uploads upto Rs 10000 via SBI’s authorized business correspondents, a special charge of 0.25% (plus service tax) would be imposed, which shall be minimum of Rs 2 and maximum of Rs 8. Similarly, if business correspondents are used to withdraw cash upto Rs 2000, then a special fee of 2.5% on the overall value, plus service tax would be charged.
3% plus service tax is anyways charged for fund transfer via IMPS method using SBI Buddy, which hasnt been changed.
ATM Withdrawal Charges Remain The Same
In their latest circular, SBI has clarified that there has been no change in their ATM withdrawal charges for normal saving account holder, and the charge of Rs 25 is only for SBI Buddy wallet’s users.
Just a recap of what SBI informed, regarding ATM withdrawal charges (which remains unchanged) and other others revised charges:
- All normal saving accounts holder from metro cities will get 8 free ATM withdrawals, which include 5 from SBI ATMs, and 3 from non-SBI ATMs
- For non-metro saving account holders of SBI, there are 10 free ATM withdrawals, which includes 5 from SBI ATMs and 5 from non-SBI ATMs
- Cash deposits into SBI Wallet using business correspondents would be charged 0.25% up till Rs 10,000, which has to be deposited in denominations of Rs 100. Maximum Rs 8, and minimum Rs 2 is the charge
- Cash withdrawals using SBI’s business correspondents will be charged 2.5% of the overall value, up till Rs 2000 (in denominations of Rs 100), which is minimum of Rs 6, per cash withdrawal
- Issue of a new cheque book with 10 cheques will now cost Rs 30 plus service tax; 25 cheques will cost Rs 75 plus tax and 50 cheques will cost Rs 150 plus tax.
- Issue of RUPay Debit cards has been made free
- Cash withdrawals from branches will cost Rs 50, after 4 free ATM withdrawals; and Rs 20 plus tax per other ATMs and Rs 10 plus tax from SBI ATMs
If you are SBI Buddy waller user, then do you think Rs 25 per ATM withdrawal makes any sense? Do let us know by commenting right here!