GST Effects on SBI ATM Withdrawal, New Debit Card And Other Charges

State Bank of India(SBI), the country’s one of the biggest lender, has revised service charges on ATM withdrawal for users of its mobile app “State Bank Buddy,” and various other cash transactions, effective June 1. The much-awaited Goods and Services Tax (GST) launched from July 1 and this changed the whole country’s transactions fate. The overall burden of these charges for SBI customers has increased further as a service tax of 15 per cent has now raised with GST of 18 per cent tax.

SBI has announced that Rs 25 plus GST will be charging for withdrawing money from an M through State Bank Buddy. If you do transactions from SBI Buddy app to your savings bank account then you have to pay a charge of 18% taxes, where before it was 15%. The SBI lender said in a release.

GST effects on SBI

What GST means to SBI customers?

SBI said that Rs 25 plus GST will be levied for withdrawing money from an ATM through State Bank Buddy. If you transfer funds from app SBI Buddy to your savings bank account then you have to pay a charge of extra 3% plus taxes, the SBI lender said in a release.

Moreover, all normal users i.e SBI saving bank accounts in a month will continue to get eight free ATM transactions (5 at SBI ATMs and 3 at ATMs of other banks) in metros and 10 free ATM transactions in non-metros (5 at SBI ATMs and 5 at ATMs of other banks), SBI added. If you exceed the limit, a charge of Rs. 20 plus taxes will be charged for each additional withdrawal.

SBI’s new basic savings account is a limited bank account specially for poorer sections of society to encourage them to start saving without any extra charges or fees. This bank account comes with an ATM-cum-debit free of cost and no annual maintenance fees.

Here are some of the key changes:

Online Transfers:

Online fund transfer through Immediate Payment Service(IMPS) will now be charged Rs 5 plus tax for amounts of up to Rs. 1 lakh, Rs. 15 plus tax for above Rs 1 lakh to Rs 2 lakh, and Rs 25 plus tax for above Rs 2 lakh and up to Rs 5 lakh.

Charges on ATM cards:

State Bank of India said that issuance of new debit cards will be charged from 1st of June and only the RuPay classic card will be issued for free.

Exchange of Soiled Notes:

If any customer wants to exchange soiled notes of more than 20 or if the total value of soiled notes is above Rs. 5,000, SBI said it will charge Rs 2 plus tax for every soiled note.

Cheque Books:

From June 1, the SBI customer’s Basic Savings Bank Deposit will have to pay Rs 30 plus GST of 18 per cent for a 10-leaf cheque-book, Rs 75 with GST for 25 leaf cheque-book and Rs 150 plus tax for a 50 leaf cheque-book.

Srinath Ekbote

I'm an Engineer in Electronics and Communication, as I'm interested in networking I have done networking courses like CCNA and ETHICAL HACKING(certified), and also have some knowledge in web designing (HTML and CSS). Apart from the subject, I have a keen interest in blogging and photography as well.

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