Cash deposit using a mobile wallet will attract Rs 8 plus service tax of Rs 3.50 per transaction
State Bank of India (SBI) has enabled withdrawal of cash from ATMs using its mobile wallet SBI Buddy, but each of these transactions can cost you Rs 25 and Rs 3.50 service tax.
Even those customers who use the mobile wallet to deposit or withdraw money from a business correspondent (BC) will now have to pay a transaction cost.
Rajnish Kumar, managing director, State Bank of India, told DNA Money, "Earlier mobile wallets could not be used to withdraw money from ATMs or from BCs. Now these facilities are enabled and it carries a charge. In other instances, the electronic transaction costs have also been revised marginally, but our ATM charges are regulated by RBI and there is no change in those."
Cash deposits or withdrawals using mobile wallet from BCs in far-flung rural areas where there are no branches and where a grocer or a retired school teacher often act as the last-mile connect to the bank will now be chargeable.
While cash deposit through these channels using a mobile wallet will attract a maximum transaction cost of Rs 8 plus service tax which is Rs 3.50 per transaction, cash withdrawals will attract a levy of 2.5% of the transaction value plus tax.
So if a farmer were to withdraw Rs 5,000 from his account through the BC using his mobile wallet he will have to pay the bank 2.5% of the transaction value plus tax.
There was a widespread outcry after a circular put on SBI website said that cash withdrawals from ATMs will be charged at Rs 25 per transaction. It did not mention anything about free transactions, which led many to believe that it has taken off free ATM transactions. In reaction to the public resentment, the bank clarified in the evening that the new charges are for cash out of its SBI Buddy app.
The no-frills accounts holders will also have some new levies. The customers with no-frills savings account with the bank will be allowed only four free transactions through both the ATMs and branches included.
The basic savings, or no-fill, accounts did not have a cheque book facility. Now, the bank has allowed cheque book, which is chargeable. These account holders will only be allowed four free transactions, which also includes ATM transactions.
There will also be service charges for soiled and imperfect notes that you may to the bank and exchange. Up to 20 pieces with a value of Rs 5,000 will be free but if you have more than 20 pieces and with a value of more than Rs 5,000 then you will be charged Rs 2 per piece for the entire tender plus service tax or Rs 5 per Rs 1,000 whichever is higher along with taxes.
TIME TO PAY
- Cash deposit using a mobile wallet will attract Rs 8 plus service tax of Rs 3.50 per transaction
- Cash withdrawals will attract a levy of 2.5% of the transaction value plus tax for every transaction one makes using SBI Buddy
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