Government requests SBI, other banks to roll back charges on withdrawal

Government requests SBI, other banks to roll back charges on withdrawal

The government also asked State Bank of India to roll back charges on minimum balance in the account.

New Delhi, March 6: Responding to the charges introduced by private banks and State Bank of India for withdrawing and depositing cash in home branches, the Central Government on Monday requested the banks to roll back charges levied on consumers. Following the path of Private banks, State-run State Bank too introduced charges for the customers for withdrawing and depositing cash in bank branches after three transactions. The move irked many customers who alleged that the move will only hamper government’s initiatives to make India a less cash-dominated economy.

The move irked many customers who alleged that the move will only hamper government’s initiatives to make India a less cash-dominated economy. The government also asked State Bank of India to roll back charges on minimum balance in the account.(HDFC, ICICI, Axis bank to charge Rs 150 after 4 cash transactions a month; public sector banks to follow suit)

In an earlier development, HDFC Bank, Axis Bank and ICICI Bank notified that after four transactions are completed, the customer will be charged Rs 150 per transaction if they are withdrawing or depositing money at the bank counter. The Rs 150 charged by the bank is exclusive of access and a tax will be charged separately, a report said. In a circular, HDFC Bank said that the charges will be levied on savings as well as salary accounts which and will be effective from March 1.

For the customers withdrawing money from the home branch, there is a limit of Rs 2 lakh per month per account, which is also known as an upper limit. Above that, the bank charges Rs 5 per thousand, subject to a minimum of Rs 150 (plus taxes and cess) will be applicable, HDFC Bank said in a statement.

Source:India.com