SBI hikes transaction charges; customers decide to boycott bank on April 6

After five years, the country's largest lender State Bank of India has decided to raise charges on various transactions through ATMs.

Some SBI customers have taken to social media to protest the hikes and called for a "no transaction day" on April 6.

SBI has implemented a new list of rules for millions of its customers across India. Right from the introduction of an increased minimum balance to various new transaction charges. The new changes have been implemented from April 1.

Even customers of the six new banks that merged with SBI will have to follow this new list of rules. With the central bank introducing these new charges, there is a high probablity that other private sector banks will follow the suit and increase their banking charges.

The move came after private banks like ICICI, HDFC and Axis bank announced similar changes.

Banks including HDFC Bank, ICICI Bank and Axis Bank began charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

The charges would apply to savings as well as salary accounts effective from last month.

Here's a list of the changes that have been implemented from April 1:

• The monthly average balance (MAB) requirement has been increased to as high as Rs 5,000 for branches in six metros

• Savings bank account holders of SBI have to maintain the monthly balance or else they will invite a penalty ranging from Rs 20 (rural branches) to Rs 100 in (metro cities), according to SBI website

• Till March 31, the monthly average balance (MAB) for a savings bank account was Rs 500 without facility of cheque book and Rs 1,000 with cheque book across the country

• India's largest bank has now decided to fix separate MABs for 'metro', 'urban', 'semi-urban' and 'rural' areas from the beginning of next financial year

• Penalty for non-maintenance of minimum balance will be between Rs 50 and Rs 100. For urban and semi-urban branches, the MAB has been fixed at Rs 3,000 and Rs 2,000 respectively

• In case of rural branches, the minimum balance has been fixed at Rs 1,000. Breach of MAB will attract a penalty ranging between Rs 20 and Rs 50

• These new rates effective from April 1 are not applicable on Surabhi, Basic Savings Bank and PM Jan Dhan Yojana accounts

• The bank has increased locker rent and curtailed number of free locker usage in a year. After usage 12 times, the customer has to pay Rs 100 plus service tax applicable for visiting his or her locker

• As far as cheque books are concerned, for a current account holder, the first 50 cheques free in a financial year; thereafter, it will cost Rs 3 per leaf

• 25-leaf Cheque Book now costs Rs 75 plus service tax and 50-leaf Cheque Book cost is Rs 150 excluding service tax

• SBI will now charge Rs 20 for opening fee including enrolment for savings account among other various charges that the bank has raised

• If one maintains Rs 25,000 in your SBI savings account, then customer can use ATM unlimited number of time. However, the charges of ATM usage over allowed 5 times will attract charges as prescribed by RBI.

Chart info sourced from SBI Website