India’s largest lender, State Bank of India (SBI) will charge for withdrawal from bank branches and ATMs from June 1, 20017. The banks will also charge for the torn and damaged notes from branches. The government has also decided to exact 5% TDS for those who pay more than Rs 50,000 per month. The money will be deducted at the source. Other financial services will also get dearer.
The first four transactions will be free of cost after which the bank will charge Rs.50 service tax per transaction. From ATMs of other banks, SBI will charge Rs. 20 per transaction. From SBI ATMs, the bank will charge Rs. 10 per transaction. Even the online services will not be free. IMPS, UPI, and IUSSD transactions above Rs 1 lakh will be charged Rs 5. from Rs 1 lakh to Rs 2 lakh, Rs 15 will be charged. And from Rs 2 lakh to Rs 5 lakh, Rs 25 will be charged apart from service tax. If one want to exchange bank notes, money would be charged after the transaction of Rs 5000.
SBI will also charge penalty on keeping low balance in the accounts. For metro cities the minimum balance is Rs.5,000 and Urban & Semi urban areas it will be Rs.3,000 to Rs.1,000.