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SBI Digital transaction costs row: Financial institution clarifies stand on primary financial savings financial institution deposit accounts

New Delhi: The State Financial institution of India (SBI) has clarified its stand on media stories that had acknowledged that India’s largest public sector lender is but to return Rs 164 crore of undue payment charged from the account holders of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the direction of digital funds throughout April 2017 and December 2019.

SBI stated that it doesn’t cost any transaction payment from its Fundamental Financial savings Financial institution Deposit (BSBD) prospects for digital transactions.

“On instructions from the federal government, SBI has returned nearly Rs 90 crore, thereby withholding the larger chunk of not less than Rs 164 crore with itself,” a report ready by IIT-Mumbai had stated final week.

“We reiterate that  BSBD customer do not pay any charges for  digital transactions including transactions using Unified Payment Interface (UPI) and RuPay debit cards,” stated an SBI assertion.

SBI added that the financial institution launched costs past first 4 withdrawals in BSBD accounts within the BC channel w.e.f. 15.06.2016 in keeping with the RBI pointers with prior intimation to the purchasers. 

“A BSBD customer normally would not need to make more than four withdrawals in a month, and even if required, the same could be done from the branch without any cost,” stated SBI.

It was reported that in April 2017 to September 2020, SBI had collected over Rs 254 crore in the direction of not less than 14 crore UPI/ RuPay transactions by charging Rs 17.70 per transactions on BSBDA (Fundamental Financial savings Financial institution Deposit Account) prospects below the Pradhan Mantri Jan Dhan Yojana (PMJDY).

“CBDT on 30.08.2020 advised Banks to refund charges collected, if any, on or after 01.01.2020 on digital transactions and not to impose charges on such future transactions. Accordingly, the Bank refunded charges of Rs. 90.20 crores to the customers recovered during 01.01.2020 to 14.09.2020. Bank is only charging beyond four free cash withdrawals in the BC channel, while there are no charges if digital channels are used. The objective is to promote digital transactions towards a ‘less cash’ economy,” SBI added.

Levying of costs on BSBDA is guided by September 2013 RBI pointers. As per the path these account holders are ‘allowed greater than 4 withdrawals’ in a month, on the financial institution’s discretion supplied the financial institution doesn’t cost for a similar. 

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