With effect from today i.e. July 1, 2021 the largest commercial bank State Bank of India (SBI) and even Axis Bank, Bank of Baroda, IDBI Bank and Canara Bank are altering some banking laws for their customers. The regulations will have an impact on the above-mentioned banks’ savings account holders, since they will have to face new cash withdrawal fees, IFSC codes, and SMS alert fees, and other rules as discussed below from today.
SBI Cash Withdrawal & Cheque Book Rules: From today, SBI customers will be able to make four free cash withdrawals from the bank’s ATMs and branches. Beyond the free transactions, the bank will impose a fee of Rs 15 + GST for each transaction. Customers with basic savings bank deposit (BSBD) accounts will be charged Rs 40 plus GST each year for cheque books with more than 10 leaves, and Rs 75 plus GST will be charged for 25 leaves. However, senior citizens are excluded from this cheque book charge, respectively.
New IFSC code for customers of Syndicate Bank: As a result of the bank’s merger with Canara Bank, Syndicate Bank account holders will receive new IFSC codes effective from July 1. Regarding the same, Canara Bank has stated on its official website that “Dear Customer, This is to inform that after the merger of Syndicate Bank with Canara Bank, all eSyndicate IFSC codes starting with SYNB have been changed. All the IFSC starting with SYNB will be disabled W.E.F 01.07.2021. We request you to inform the remitters (senders) to use only your new IFSC code starting with “CNRB” while sending NEFT/RTGS/IMPS, from now itself.”
New cheque books for customers of Andhra Bank and Corporation Bank: On April 1, 2020, Andhra Bank and Corporation Bank merged with Union Bank. As a result, from July 1, customers of Andhra Bank and Corporation Bank would be required to utilise new cheque books issued by Union Bank of India. Following the amalgamation of Andhra Bank and Corporation Bank with it, and in accordance with a prior guideline issued by the Reserve Bank of India (RBI), the Union Bank of India has informed its customers that old cheque books will be phased out and replaced with new cheque books with enhanced security features starting from July 1.
New SMS alert charges for Axis Bank customers: From July 2021, Axis Bank savings account customers will be charged 25 paise each SMS alert, up to a monthly threshold of Rs 25, according to the bank. Axis Bank has made the following statement on its website: “Value-added SMS fee is currently charged at INR 5 per month (levied quarterly at INR 15 per quarter) on subscription basis for certain Value-Added Services (VAS) alert(s). This will continue till 30th June, 2021.” However, the new SMS alert charges would not apply to Burgundy, Burgundy Private, Priority, NRI, Trust & Government Accounts, Defense Salary Accounts, Staff Accounts, Small & Basic Accounts, Pension Accounts, Select Salary relationships and promotional SMS sent from Bank and One-Time Password (OTP) alerts.
New cheque leaf charges for IDBI Bank customers: IDBI Bank has changed charges for issuing cheque leaves for its customers. From July 1, 2021, customers will have to incur a fee of Rs 5 per cheque leaf if they exceed the 20 free leaves per year. Customers with a ‘Sabka Savings Account’, on the other hand, will be excluded from this fee. Customers can now utilize up to 60 cheque leaves per year without incurring any fees in the first year of account opening, and 50 leaves in the following years. Apart from that, each leaf will be charged Rs 5 from today respectively, according to the bank.