From 1 October onwards, the State Bank of India will begin charging a fee of Rs 15 + GST for every cash withdrawal beyond four transactions per month from its Basic Savings Bank Deposit accounts. This change will affect customers who mainly use cash and rely on Aadhaar enabled payment services for cash withdrawals. While the first four cash withdrawals in a month will still be free, SBI is modifying how these four free transactions are counted.
Previously, Aadhaar Enabled Payment System (AePS) transactions were excluded from the monthly limit. However, from 1 October, these transactions will now be included as well. It is important to note that digital transactions will continue to be free with no limits imposed on them.
The BSBD account holders shall get a total of four free cash withdrawals, as per the revised rules of SBI. After this limit gets crossed, each and every additional cash withdrawal shall attract a fee of Rs. 15 + GST. The four transactions will cover cash withdrawals via different channels, such as SBI and other bank ATMs, cash withdrawals at SBI branches and AePS cash withdrawal transactions.
This is different from the current structure where the AePS transactions were not counted towards the four-transaction limit. Suppose a customer makes three ATM/branch cash withdrawals and then uses AePS to withdraw cash. In such a case, all four will count towards the monthly free limit under the revised rules of SBI. For fifth cash withdrawal, a fee of Rs. 15 + GST will be charged.
The recent change does not require SBI BSBD customers to pay any fee for making digital banking transactions. SBI has confirmed that digital transactions will remain free, with no restrictions on them. This applies to electronic methods of transferring money. The bank allows customers to use digital channels for payments as well as transfers without incurring any additional charges for cash withdrawals. However, for customers who frequently withdraw cash, the updated policy regarding AePS may make it easier to reach the four transaction limit.
The immediate impact of changed rule by SBI will totally depend on how often an account holder requires physical cash. For individuals who mainly use UPI, cards or other digital payment methods, the changes may have little practical effect as digital transactions will continue to remain free of cost. However, for customers who rely heavily on cash withdrawals, this change could end up resulting in increased monthly banking costs for them.
This is especially important because transactions through the AePS, which allow users to access cash via Aadhaar authentication, will now count toward the limit of four free withdrawals. Therefore, customers should look out for their cash withdrawals across all channels instead of treating ATM, branch and AePS withdrawals as separate limits.
Source: Business Standard
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