The State Bank of India country’s largest bank from will be charging service charges if you are sending money home using the State Bank of India’s network of over 10,000 branches. Earlier bank was offering this service free to millions.
Bank sources said from now it will charge 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 upper limit beyond which customers will have to pay fees on inter-branch, inter-bank and inter-city services, resulting to an increase of overall cost to customers. Previously 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. Now the bank has reduced the upper limit to Rs 20,000, beyond which a fee will be charged.
Moreover, customers getting their passbook updated at a branch other than their home branch will have to pay Rs 10 per pass book.
The move was decided even before the bank raised the interest rates and a circular has already been issued to all branches. In a circular to all branches, the bank has informed that the new service charge structure that will be effective from September 1.
Having rolled out core banking solutions (CBS) branches across the country, the bank is now aiming at levering it to rise up its fee-based income.
The bank has been charging collection and draft charges mainly, now a nominal transaction fee will continue.
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