New ATM cash withdrawal rules
RBI sets timelines for reversal of failed ATM transactions
Banks have to pay a specified compensation per day if the amount is not reversed within a specified time period
The Reserve Bank of India or RBI last week come up with a new set of rules prescribing a turnaround time for banks to settle failed transactions, including failed ATM transactions where customer’s account was debited but cash was not dispensed. In such cases of failed ATM transactions, the RBI has specified compensation banks have to pay to their customers if the amount is not reversed within a specified time period. Earlier the RBI had said that failed ATM transactions due to non-availability of cash at ATMs, invalid PIN or other non-cash withdrawal transactions cannot be counted as free transactions.
The are over 2.2 lakh ATM machines in the country, according to RBI’s latest annual report.
According to new rules, SBI will allow 8-10 free ATM transactions in a month for its customers with average monthly balance (AMB) of up to Rs 25,000 in their savings accounts. For customers with AMB above Rs 25,000, SBI will allow unlimited transactions at its own ATMs. The free limit at other banks’ ATMs would remain the same for all customers — three transactions in metro cities and 5 transactions at ATMs in other cities and towns.
Customers who exceed the number of free transactions will have to pay a fee ranging from Rs 5 plus GST to Rs 20 plus GST.
Cardless cash withdrawals at ATMs will be charged at Rs 22 plus GST.
SBI salary account holders will continue to enjoy unlimited free transations at all ATMs.
SBI account holders with AMB of up to Rs 25,000 are allowed two free cash withdrawals at bank branches. Those with AMB between Rs 25,000 and Rs 50,000 will get 10 free cash withdrawals.
Free cash withdrawals for customers with AMB above Rs 50,000:
Above Rs 50,000 and up to Rs 1,00,000: 15 free cash withdrawals
Above Rs 1,00,000: Unlimited
Charges for transactions beyond the free limit Rs 50 plus GST (per transaction).[my-instagram-feed user_id=17841408343754263 skin_id=5241]
New loans to be linked with repo rate
SBI will use the repo rate as the external benchmark to price all its new floating-rate loans for micro, small and medium enterprises (MSMEs), housing and retail loans, and credit for medium-sized enterprises from today.
The bank will offer a 265-basis-point (bp) spread over RBI’s repo rate on new home loans. The repo rate at 5.4 per cent and the 265 bps spread takes the external benchmark rate to 8.05 per cent. On top of this, SBI will charge a premium of 15 bps, thereby taking the interest charged on a home loan of up to Rs 30 lakh to 8.2 per cent for salaried borrowers.
Click here to read more about SBI’s new repo-linked home loan scheme.
Charges for non-maintenance of average monthly balance
The fine for non-maintenance of AMB will now depend on the category of the branch. Here’s a category-wise breakdown of the fine you will have to pay if you fail to maintain AMB
Metro & Urban Centre branches (AMB of Rs 3,000):
Shortfall over 50 per cent: Rs 10 +GST
Shortfall between 50 and 75 per cent: Rs 12 +GST
Shortfall greater than 75 per cent: Rs 15 +GST
Semi-Urban Centre branches (AMB of Rs 2000)
Shortfall over 50 per cent: Rs 7.50 +GST
Shortfall between 50 and 75 per cent: Rs 10 + GST
Shortfall greater than 75 per cent: Rs 12+GST
Rural Centre branches (AMB of Rs 1000)
Shortfall over 50 per cent: Rs 5 +GST
Shortfall between 50 and 75 per cent: Rs 7.50 +GST