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New SBI cash transaction rules to be implemented from April 1

06 March 2017

Monthly Average Balance charges: The bank has also chose to levy penlty on customers who will fail to maintain the stipulated minimum balance.

HDFC Bank: After every four free transactions (both deposits or withdrawals), HDFC Bank will charge Rs 150 per transaction on savings account holders and also salary accounts holders.

Five associates banks of SBI - State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) - will merge with the parent on April 1.

As of now, monthly average balance (MAB) for a savings bank account is Rs 500 without facility of cheque book and Rs 1,000 with cheque book across the country.

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SBI has 31 crore savings bank accounts.

In metropolitan areas, there will be a charge of 100 rupees plus service tax, if the balance falls below 75 per cent of the minimum account balance of 5,000 rupees.

Besides, the SBI also re-introduced penalty on non-maintenance of minimum cash balance in accounts, effective from April 1, 2017.

While five withdrawals are free in a month; from sixth onwards, the bank will charge Rs 10 per transaction.

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The Reserve Bank has permitted banks to levy charges for breaching minimum balance limit. The government is also said to have told banks to reconsider imposing ATM withdrawal charges above a certain limit, ANI said while quoting sources.

Debit-card holders who maintain an average quarterly balance of up to Rs 25,000 will be charged Rs 15 for SMS alerts per quarter.

In case of rural branches, the minimum balance has been fixed at Rs 1,000.

The advantage for the bank's own customers is that the bank will allow deposits or withdrawals of up to Rs 2 lakh free of cost at one go per day. For Axis Bank and Kotak Mahindra's Pro or Classic account holders, the number of free transactions is five.

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So, if you own a small business and make banking transactions through a current account, the impact of the limited cash transactions may not have a major impact on you.

New SBI cash transaction rules to be implemented from April 1