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SBI, India’s largest bank, has over 22,000 branches and services over 45 million customers. The bank’s fundamental principles of Service, Sustainability, Ethics, and Transparency drive its unrelenting commitment to innovation and customer-centricity. It is the largest commercial bank in India and holds a special place in its modern financial system. It is an Indian multinational and statutory authority for public sector banking and financial services based in Mumbai. The rules of SBI are put in place, which their customers should know. The article discusses a few important guidelines which the SBI has recently put forward.
The State Bank of India’s Historical Background
The Bank of Calcutta, later called the Bank of Bengal, was founded in 1806 and became the forerunner of the SBI in the first part of the nineteenth century.
The Imperial Bank of India came into being in 1921 when the 3 Presidency Banks of Bombay, Bengal, and Madras merged. The Imperial Bank of India conducted specific central banking tasks in conjunction with its normal commercial banking activities until the Reserve Bank of India was established in 1935.
The Imperial Bank of India gave up its central banking powers after the Reserve Bank of India was established. However, it continued to operate as the Reserve Bank’s agent in places where the RBI did not have branches.
The government decided to nationalise the Imperial Rank in 1954. Based on the recommendations of the RBI-appointed Committee on All India Rural Credit Survey, this decision was made. The government accepted the advice and, in 1955, nationalised the Imperial Bank of India to create the State Bank of India.
The State Bank of India’s Share Capital
SBI has INR 20 crore as the upper limit of the share capital. It is also called the authorised capital, split into 20 lakh shares. The State Bank has around INR 892 crore issued capital as of 2020. The Reserve Bank of India, the general public, and insurance firms own shares in the State Bank.
New Guidelines of SBI
After a five-year hiatus, the authorities have issued new rules of SBI. These rules or guidelines came into effect starting in April 2017. Some of the new rules of SBI are as follow:
- Your account will be credited three times for free. You will be charged 50/- per deposit if you deposit more than three times.
- Unless you keep a minimum balance in the account, you may be charged up to Rs.200/- plus a surcharge (depending on the number of days).
- A minimum balance of 5000/- must be maintained in the account of the SBI branch account holder in metropolitan cities.
- A minimum balance of 3000/- must be maintained in the city/town SBI branch account holder.
- A minimum balance of 2000/- must be kept in a branch account in a semi-urban area.
- A minimum of 1000/- must be maintained in the holder’s village branch account.
- SBI ATMs are free for the first five transactions; after that, you will be charged 10/- every transaction.
- If you keep a balance of Rs. 25000/- in SBI’s savings account, you can use SBI ATMs without paying any fees. Additionally, if you keep a balance of Rs. 100000/- in SBI’s savings account, you will be able to use ATMs from SBI and other banks without incurring any costs.
- After three months, you will be charged 15/- for SMS (SMS is free if you maintain a balance of 25000/- in the SBI savings account).
- Other bank ATMs are free for the first three times you use them; after that, you will be charged 20/- every transaction.
- Failure to maintain a Monthly Average Balance (MAb) in the accounts will result in a penalty ranging from Rs 50 to Rs 100 per month, plus service tax.
- Up to Rs 1,000 in UPI/USSD transactions will be free. There are charges after Rs 1,000.
From February 2022, the rules of SBI concerning online transactions have changed. A few of these rules are as follows:
- Charges for SBI IMPS: Online Method
There will be no GST or service fee on any immediate payment service transaction made through net banking for sums till Rs 5 lakh.
- Service Fees for SBI NEFT: Online Option
SBI would not impose any service charge or GST across any NEFT transaction above rupees 2 lakh made using online or mobile banking, including the YONO app.
- Service Fees for SBI RTGS: Online Option
There would be no service charge or GST across any RTGS transaction over Rs 5 lakh made using the internet or mobile banking, including the YONO app.
Conclusion
The State Bank of India has made substantial advances in the right direction. It has made significant progress in developing banking services in the semi-urban and rural regions and providing financial assistance to farmers, small businesses, and cooperative institutions. In addition, the bank put in place new rules concerning transactions both online and offline for their customers. The above article puts forward a few essential rules of SBI in brief.
