Reacting to a study by IIT Bombay claimed that SBI and several other banks have been imposing excessive charges on certain services provided to those with zero-balance accounts, the PSU cited a 2012 RBI decision which allowed banks to levy charges at their will on BSBD accounts.
The State Bank of India (SBI) on Thursday released a clarification on reports stating that the bank, along with several others, has been levying ‘excessive charges’ on some services provided to those with zero-balance accounts or Basic Savings Deposit Accounts (BSBDA).
A study by the Indian Institute of Technology (IIT-Bombay) has pointed out that excessive charges have been imposed by SBI and several other banks in the country.
According to the Reserve Bank of India’s decision in August 2012, banks are free to levy charges in BSBD accounts beyond four free transactions. Citing it as a reason, SBI said, “The availment of such additional services shall be at the option of the customers. Accordingly, SBI introduced charges for debit transactions beyond four free transactions in BSBD accounts w.e.f 15.06.2016 with prior intimation to the customers.”
In August last, the Central Board of Direct Taxes (CBDT) advised banks to refund the charges collected, if any, on or after 01.01.2020 on transactions carried out using the digital mode and not to impose charges on future transactions carried out through such modes.
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Home / Business / SBI clarifies on excessive charges on transactions in zero-balance accounts
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BUSINESS
SBI clarifies on excessive charges on transactions in zero-balance accounts
Reacting to a study by IIT Bombay claimed that SBI and several other banks have been imposing excessive charges on certain services provided to those with zero-balance accounts, the PSU cited a 2012 RBI decision which allowed banks to levy charges at their will on BSBD accounts
By hindustantimes.com | Written by Arpan Rai | Edited by Avik Roy
UPDATED ON APR 15, 2021 06:51 PM IST
SBI has stopped recovering charges in such accounts on all digital transactions w.e.f. 15.09.2020, while retaining charges on cash withdrawals over and above four free withdrawals allowed per month.(File photo)
The State Bank of India (SBI) on Thursday released a clarification on reports stating that the bank, along with several others, has been levying ‘excessive charges’ on some services provided to those with zero-balance accounts or Basic Savings Deposit Accounts (BSBDA).
A study by the Indian Institute of Technology (IIT-Bombay) has pointed out that excessive charges have been imposed by SBI and several other banks in the country.
According to the Reserve Bank of India’s decision in August 2012, banks are free to levy charges in BSBD accounts beyond four free transactions. Citing it as a reason, SBI said, “The availment of such additional services shall be at the option of the customers. Accordingly, SBI introduced charges for debit transactions beyond four free transactions in BSBD accounts w.e.f 15.06.2016 with prior intimation to the customers.”
In August last, the Central Board of Direct Taxes (CBDT) advised banks to refund the charges collected, if any, on or after 01.01.2020 on transactions carried out using the digital mode and not to impose charges on future transactions carried out through such modes.
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SBI, following CBDT directives, has refunded the charges recovered in respect of all the digital transactions to the BSBD customers w.e.f. 01.01.2020 to 14.09.2020.
SBI has stopped recovering charges in such accounts on all digital transactions w.e.f. 15.09.2020, while retaining charges on cash withdrawals over and above four free withdrawals allowed per month.
The objective, according to SBI, is also to encourage BSBD account holders including PMJDY account holders to adopt digital payment through the prescribed modes vis-à-vis the cash transactions.
The public-sector bank has said that customer centricity has always been the bank’s focus and that it has been determinedly working towards offering a convenient banking experience to all its diverse range of customers, the bank said in a statement.
The bank has also waived fees levied on SMS services and on maintenance of monthly average balance to all its savings bank account holders while promoting financial inclusion in the country in a big way,” the lender said in a statement.
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