Be ready to pay service charges if you are sending money home using the State Bank of India’s network of over 10,000 branches.
Ending the free service they offered to millions, the country’s largest bank has decided to levy Rs 2 per Rs 1,000, subject to a minimum Rs 25 per cash deposit, at a non-home branch. Non-home branches are used by depositors with accounts in other branches or banks. Earlier, cash deposit up to Rs 50,000 at a non-home branch was free.
The bank has also lowered the threshold beyond which customers have to pay fees on inter-branch, inter-bank and inter-city services, resulting in an increase of overall cost to customers. Earlier, inter-city transaction up to Rs 50,000 for cheques, clearing instruments and transfer of funds from home branch to a third-party account of another branch was free. The bank has reduced the threshold to Rs 20,000, beyond which a fee will be charged.
Also, customers updating their passbook at a branch other than their home branch will have to pay Rs 10 per pass book.
The move was finalised even before the bank raised interest rates and a circular has already been issued. In a circular to all branches, the bank informed that the new service charge structure that will come into effect from September 1.
Having rolled out core banking solutions (CBS) branches across the country, the bank is now aiming at levering it to ramp up its fee-based income.
The bank has been levying collection and draft charges mainly, now a nominal transaction fee will be levied.