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All you need to know about SBI’s new rules and revised charges

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SBI's new rules and revised charges

SBI, the State Bank of India, is one of the largest and oldest banks in India. It hosts several customers and seems to be one of the most reliable banks in India. But given the massive competition in the market, it uses various policies to attract customers. Therefore it tries to change its policies according to the changing scenario. Along the same lines, it has announced specific new changes in its rules applicable from next month. So in this article, we will tell you all you need to know about the changes in the rules and regulations of SBI’s new rules policy. 

What has SBI told about the change in rules and charges? 

SBI has announced that it is going to change rules and charges for its Bank branches and ATMs. It has been made clear that these new rules will come into effect from 1st July. Further, these rules will continue at least till 30th September. Basic Saving Bank deposit account holders will face all these changes. 

SBi has clarified that these steps have been undertaken owing to the pandemic. It has also announced that the ceiling for cash withdrawals and Limits of cheque withdrawal are enhanced to support SBI customers in a pandemic. 

All to know about a Basic Saving Bank Deposit Account

Basic Saving Bank Deposit Account

A basic Saving Bank Deposit account refers to that account concerned with poor strata of society to enhance their saving habits. This account does not incur charges or fees, motivating poor people to save money in these accounts. Since there is no minimum or maximum balance limit, these savings accounts are also called ‘Zero Balance Saving Account’. Anyone can open this account with valid KYC documents. After opening this account, The account holders get a primary Rupay cum debit card. 

What are the new changes for these essential Saving Bank deposit account holders? 

changes for these essential Saving Bank

(A look at the new SBI ATM withdrawal rules

According to the SBI’s new rules, essential savings Bank deposit account holders will get four free cash withdrawals in a month. You can facilitate these  withdrawals from both Bank Branches and ATMs. Once you have reached the free withdrawal limit, the bank will impose charges of Rs. 15 plus GST. One must note that these extra charges are applicable at all ATM, Non-SBI ATMs and SBI Beaches. 

A detailed look at changes in charges on cheque book

charges on cheque book

As we know that an account holder also gets a cheque book, SBI has also announced changes in rules and orders regarding cheque books. The bank has announced that a primary Bank account holder will get ten cheque leaves in one year. A detailed look at all cheque book charges is below: 

  1. There will be Rs. Forty-plus GST Charges on ten cheque leaves. 
  2. The bank will charge Rs. 75 plus GST in case of twenty-five cheque leaves. 
  3. If one issues an emergency cheque book of 10 leaves, he/she will have to pay Rs. 50 plus GST. 
  4. There will be no cheque book charges for senior citizens under the new rules. 
  5. There will be no charges on Non-financial transactions undertaken by Basic Account holders at SBI home and non-Home branches. 
  6.  Primary account holders will also get free transfer transactions at the SBI branch and other channels. 

New rules regarding withdrawals, as per SBI 

New rules regarding withdrawals

SBI’s new rules has also announced various changes in the withdrawal limits as mentioned below: 

  • The bank increases customers’ cash withdrawal limit At non-home branches from 1st July. 
  • There is a gradual increase in the limits on withdrawals through cheque and withdrawal forms for Non-home cash withdrawals 
  • One can withdraw Rs. 1 lakh in one day through a cheque according to new rules. 
  • Similarly, one can withdraw RS. 25 thousand in a day through a withdrawal form and a saving bank account as per new rules. 
  •  The bank has set a new limit of Rs. Fifty thousand per month on Third-party cash withdrawals through cheque. 
  • The bank has clarified that there will be no cash payments to third parties using withdrawal forms. 

Rounding up

SBI’s new rules policy regarding a cheque, ATM and other withdrawals will come into effect from 1st July and last till 30th September. The Bank says that these rules will help SBI customers during the ongoing pandemic.  Let’s see if these new rules are effective in easing the cash transactions of the customers or not.

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Business & Finance

Banks To Be Closed From Tomorrow For 6 Days

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Banks To Be Closed From Tomorrow For 6 Days

Why are banks going to be closed?

banks going to be closed

The Reserve Bank of India has announced special times of year for moneylenders under three sections: the Negotiable Instruments Act, Holiday, Real Time Gross Settlement Holiday, and Banks’ Closing of Accounts. All banks to be closed from tomorrow for 6 days, including the public area, private area, foreign banks, agreeable banks, and regional banks, the nation overstay shut on these told occasions. The bank occasions differ, starting with one state then onto the next. 

Every one of the banks stays shut on Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2), Christmas Day (December 25). Banks likewise stay shut on celebrations including Diwali, Christmas, Eid, Guru Nanak Jayanthi, Good Friday.

When Will, The Banks, Stay Closed?

When Will, The Banks, Stay Closed

Banks have 15 holidays in July; All banks will stay closed on July 16th in Dehradun for Harela Puja. Banks will remain closed on 17th July in Agartala and Shillong for U Tirot Sing Day and Kharchi Puja. July 18th is Sunday which is a national holiday for all Banks. Banks will remain closed on 19th July in Gangtok for Guru Rinpoche’s Thungkar Tschechu. July 20th marks Bakrid, so all Banks in Jammu, Kochi, Srinagar, Thiruvananthapuram will be closed for that occasion, and there will be a national holiday on 21st for Eid Al Adha. Still, the banks in Bhubaneswar, Gangtok, Kochi, and Thiruvananthapuram will be functional on that day.

What to do?

If you are a bank customer, please keep visiting your bank for a proper routine and get any urgent work done before these mentioned holidays. 

List of Dates

List of Dates
  • 16 July 2021- Friday – Harela Puja (Dehradun)
  • 17 July 2021 – Saturday – U Tirot Sing Day / Kharchi Puja (Agartala, Shillong)
  • 18 July 2021 – Sunday (Weekend off)
  • 19 July 2021 – Monday – Guru Rinpoche’s Trungkar Tshechu (Gangtok)
  • 20 July 2021 – Tuesday – Bakrid (Jammu, Kochi, Srinagar, Thiruvananthapuram)
  • 21 July 2021 – Wednesday – Eid al Adha (Nation-wide except for Aizawl, Bhubaneswar, Gangtok, Kochi, and Thiruvananthapuram)

Conclusion

If you have any future work at the bank, here is a notice for you as banks to be closed from tomorrow for 6 days beginning one week from now because of the moving toward celebrations. According to the Reserve Bank of India (RBI) occasion schedule list, every nine occasions is a state-explicit occasion for various events. Consequently, on the off chance that you have significant bank-related work in July, this news article should have indeed helped you identify these holidays.

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Business & Finance

Will The Ban on Mastercard by RBI affect existing Indian Customers?

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Ban on Mastercard by RBI affect existing Indian Customers

What has happened?

The R.B.I has banned Mastercard Asia and Pacific Pte. Ltd. from getting new customers into their company in India. Will the ban on Mastercard by RBI affect existing Indian customers? The ban has happened because Mastercard Asia, Pacific Pte Ltd have not accepted the terms and conditions of foreign card companies to store payment data in India.

The ban will take effect from the 22nd of July. The regulator of R.B.I said that “The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. Notwithstanding the lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.”

What will banks do now?

What will banks do now

Being a reputed payment system operator, Mastercard was authorized to issue cards for payment in India under the Payment and Settlement Act System. But as of now, R.B.I has banned the production of credit, debit, or prepaid cards from Mastercard to new customers, from the 22nd of July. Banks will not be able to issue new mastercards from now on. R.B.I also added that “Mastercard shall advise all card issuing banks and non-banks to conform to these directions.”

As the order was issued, RBL Banks Said, “We await further information from Mastercard on RBI’s supervisory action. RBL Bank currently issues credit cards on the Mastercard network only.”

Will This Affect Existing Customers of Mastercard?

Affect Existing Customers of Mastercard

India has millions of Mastercard’s credit and debit card users. So, the ban on mastercard by RBI affect existing Indian customers.

According to the data released by PPRO, London Based Payments, Mastercard was held accountable for over 30% of total transactions done in India. So, if you are an existing customer of Mastercard in India, you don’t have to worry as this new regulation will not affect the existing customers, The regulator of R.B.I earlier mentioned that “This order will not impact existing customers of Mastercard.”, So if you own a Mastercard Credit, Debit or Prepaid card, you can use it without any hassle.

What is the R.B.I’s Payment Data Storage Rule?

R.B.I's Payment Data Storage Rule

In 2018, R.B.I.’s regulator issued a notice that “All system providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India.”

It affected tech giants like Google, Paytm, Whatsapp, who used to store data in cloud-based storage outside India. The Bank further stated that “This data should include the full end-to-end transaction details or information collected or carried or processed as part of the message or payment instruction.”

RBI gave a half year time to guarantee new installment information stockpiling standards. The organizations were approached to report consistency and present a review report inside the course of events. Even after two years, a few unfamiliar organizations are yet to follow RBI information localization rules.

Conclusion

So it seems that the Indian Government has finally started getting strict in terms of digitized data storage. This will continue to affect tech companies who hesitate to show their privacy policy. Thus, all data will be more regulated and protected.

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Business & Finance

Critical judgment on Cash Deposits by Housewives Up to Rs 2.5 Lakh

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Critical judgment on Cash Deposits Up to Rs 2.5 Lakh by Housewives

Introduction 

Tax is an essential source of revenue for the government. But to avoid the exploitation of poor people due to high taxes, we have several laws providing certain exemptions to specific people. But still, there remains some ambiguity in his rules due to which the court and tribunals have to intervene and clarify particular provisions. Along the same row, the ITAT (Agra bench of Income Tax Appellate Tribunal (ITAT) has recently held that if a housewife makes a cash deposit of Rs. 2.5 lakhs after demonetization, it will not come under the purview of Income Tax. So, in this article, we will tell you all the details of this critical judgment on cash deposits by housewives up-to Rs.2.5 lakh.. 

What was the case, and what did the Tribunal hold? 

what did the Tribunal hold

Recently, a housewife named Uma Agarwal, a resident of Gwalior, appealed in the Agra bench of Income Tax Appellate Tribunal. She had a total income of Rs 1,30,810 in her income tax return filed for fiscal 2016-17. After demonetization, she deposited Rs 2,11,500 cash in her bank account. But the Income-tax department asked her how she got this much money in her account, to which she explained that she saved this amount from the savings of her husband, children, etc. 

However, the CIT did not believe her, and they ordered to treat this money as unexplained money. Therefore the lady appeal in the matter. The appellate tribunal after hearing both the parties said that it allows the appeal because women’s contribution to the family is immeasurable. It further explained the earlier decision taken by the Supreme Court. In addition, the tribunal acknowledged that nearly 159.85 million women have household work as their primary occupation in Indian homes. 

The Tribunal held that women save every money they get in gifts, but due to demonetization, they had to deposit this money in the bank to get new currency notes. Therefore the Tribunal exempts all the women who made cash deposits of less than Rs. 2.5 lakh during demonetization. This decision will become an important precedent for other future decisions. 

Closing words: 

This critical judgment on cash deposits by housewives by the Income Tax appellate tribunal is an important decision for housemakers. We often ignore The wives who do housework. Even government does not count their contribution in National Income. Therefore it becomes difficult for them to show how they collected their Income. But after this decision, there are chances that the scenario might improve in the future, and we will start valuing household work as we weigh the professional work.

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