Page 7 - Banking Finance August 2021

BANK UPDATE

from it, we have now extended the apply irrespective of whether the with- "Charges will be recovered beyond 4
facility for online shopping. With this, drawal takes place at branches or free cash withdrawal transaction (in-
our customers can shop from over ATMs. cluding ATM and branch)," SBI said.
2,500 e-commerce merchants and
The BSBDAs, which included PM Jan With respect to cheque book services,
brands just by using mobile phone and Dhan Yojana accounts, did not include first 10 cheque leaves will be free of
PAN. The new offering improves cheque books. Earlier, basic account cost in a financial year.
affordability to millions of our custom- holders who required cheque books
ers as they can purchase high-value had to upgrade to a regular savings Thereafter, 10 leaf cheque book will be
products on EMIs and in a secure, con- levied Rs 40 plus GST; 25 leaf cheque
bank account with minimum balance book at Rs 75 plus GST and emergency
venient, instant and digital manner."
requirements. SBI has said that it will cheque book will attract a charge of Rs
issue BSBDA customers 10 cheque 50 plus GST for 10 leaves or part
Bank credit grows by leaves free in a fiscal. Thereafter, the thereof, SBI said.

5.74%; deposits by 9.73% customer will be charged Rs 40 plus "However, senior citizen customers
GST for a 10-leaf cheque book, Rs 75
Bank credit grew by 5.74 percent to Rs are exempted (on cheque book ser-
plus GST for a 25-leaf cheque book and
108.43 lakh crore and deposits rose by vices)," said the state-owned lender.
Rs 50 plus GST for an emergency
9.73 percent to Rs 153.13 lakh crore BSBD accounts can be opened by any
in the fortnight ended June 4, 2021, cheque book. However, senior citizens individual after valid KYC (know your
will be exempted from these charges.
RBI data showed. customer) documentation.
Bank advances stood at Rs 102.55 lakh SBI to levy charges for cash Such accounts are primarily meant for
crore and deposits at Rs 139.55 lakh poorer sections of society to encour-
crore in the fortnight ended June 5, withdrawal age them to start saving without any
2020, according to RBI's Scheduled The country's largest lender SBI will burden of charges or fees.
Banks' Statement of Position in India as levy charges for cash withdrawal be- According to a study revealed by IIT-
on June 4, 2021, released. yond four free transactions in a month Bombay in April this year, SBI earned
In the previous fortnight ended May from customers holding the basic sav- over Rs 300 crore by way of imposing
ings bank deposit (BSBD) accounts.
21, 2021, bank credit had grown at service charges on nearly 12 crore
5.98 percent and deposits at 9.66 per- These customers will also be levied BSBD account holders during 2015-20.
cent. In FY2020-21, bank credit had charges for cheque book beyond 10
grown by 5.56 percent and deposits by leaves in a year. Banking industry con-
11.4 percent. As per the revision in service charges cerned: Huge slowdown
for BSBD accounts, State Bank of In-
SBI fixes charges for basic dia (SBI) will levy charges ranging from in credit offtake
a/cs Rs 15 to Rs 75 for the "additional value Thehuge slowdown in credit offtake is
added services" with effect from July worrying banking sector with growth
State Bank of India (SBI) has said that
1, 2021. in hit due to lack of investments from
it has fixed charges for value-added the private sector and low capital ex-
services for basic savings bank deposit Non-financial transactions and transfer penditure by corporates, said VS
accounts (BSBDAs) with effect from transactions will be free of cost at Radhakrishnan, Deputy Managing Di-
July 1, enabling issuance of cheque branches, ATM, CDM (cash dispensing rector at State Bank of India.
machines) for the BSBD account hold-
books. A senior official said that there Deposit growth has been close to 10
are no changes in the ATM and cash ers.
per cent in May 2021 as customers opt
withdrawal charges. These continue to SBI said it will charge Rs 15 plus GST
be free for the first four transactions, per cash withdrawal for transaction at for savings rather than consumption.
beyond which customers will be bank branches, SBI ATM or from other "The slowdown in credit growth has
charged Rs 15 plus goods and services bank's ATMs beyond 4 free cash with- been at around 5.3 per cent in FY21,
tax (GST) for additional usage. This will drawals. the lowest in the last three-four years.

BANKING FINANCE | AUGUST | 2021 | 7