1: Check New BSBD Account Rules and Charges

Overview of the New Policy

The State Bank of India (SBI), the country’s largest public sector bank, has announced a revision in its service charges related to cash withdrawals. Effective October 1, the bank will implement new cash withdrawal charges specifically targeting Basic Savings Bank Deposit (BSBD) accounts opened through the branch channel.

Under the revised structure, BSBD account holders will continue to receive four free cash withdrawals per month. However, any cash withdrawal made beyond this monthly free limit will attract an extra service charge.

Revised Charges

• Free Limit: Customers get 4 free cash withdrawals per calendar month across channels (including SBI ATMs, other bank ATMs, branch cash counters, and AEPS transactions).

• Penalty Fee: Starting from the 5th transaction in a month, a fee of ₹15 + applicable GST will be levied on every additional cash withdrawal.

• Digital Transactions: SBI clarified that all digital transactions will continue to remain completely free without any restrictions or extra levies, encouraging users to shift toward online payment channels.

What is an SBI BSBD Account?

The Basic Savings Bank Deposit (BSBD) account is a primary financial inclusion product offered by SBI. It is tailored primarily for lower-income sections of society to promote savings habits without imposing heavy banking fees.

BSBD Accounts:

1. Zero Balance Requirement: Customers are not required to maintain any minimum monthly balance.

2. RuPay ATM Card: Holders receive a basic RuPay ATM-cum-Debit card free of cost, with no annual maintenance charges.

3. No Cheque Book Facility: Unlike regular savings accounts, BSBD accounts do not come with cheque book privileges. Cash withdrawals are allowed via withdrawal forms at bank branches or through ATMs.

4. Account Restrictions: An individual holding an SBI BSBD account is legally not permitted to hold any other operational savings account with SBI. Any pre-existing savings accounts must be closed within 30 days of opening a BSBD account.

Impact on Account Holders

This policy revision is aimed at managing physical cash transaction loads at bank branches and encouraging cashless payments. Customers who rely heavily on cash transactions for their day-to-day needs should carefully track their monthly transactions. To avoid paying unnecessary penalties:

• Plan cash requirements in advance to stay within the 4-withdrawal monthly threshold.

• Utilize electronic transfer modes like UPI, YONO App, NEFT, and RTGS for daily purchasing and fund transfers, as digital modes remain free of charge