Banking Services Rules Changes: From today (July 1, 2020) many banking services, norms have changed. These changes are going to directly impact bank customers. In order to give people some relief during the COVID-19 pandemic, the government had relaxed some rules of financial services like bank transaction charges after exhausting free cash withdrawal limit on ATM, minimum account balance. These relaxations on banking services and rules will be tightened from July 1.
The relaxation was announced for three months — April, May, June-- the deadline is 30th June 2020.
Changes in Banking Services, Rules and Charges from July 1, 2020
Bank deposits:
Bank account holders will get a lesser amount on bank deposits in terms of interest rates
Savings account minimum balance:
Finance Minister Nirmala Sitharaman had announced on March 24 that it will not be mandatory to maintain the minimum balance in savings account in any bank, amid COVID-19 crisis. This order was from April to June. From July 1, all bank customers will have to maintain a minimum balance in their savings account (depending upon bank to bank). Banks like SBI have different slabs when it comes to maintaining minimum balance in savings account. SBI account holders, at present, need to maintain average minimum balance of Rs 3,000, Rs 2,000 and Rs 1,000 in metro, semi-urban and rural areas, respectively. The amount varies from bank-to-bank.
ATM cash withdrawal rules:
The State Bank of India has waived off service charges for all ATM transactions made not only on SBI ATMs but other bank ATMs as well.
The announcement made recently said, “In view of the announcement made by Finance Minister on 24th March, SBI has decided to waive ATM charges for all ATM transactions made on SBI ATMs and other bank ATMs on account of exceeding the free number of transactions up to 30th June.” Hence, the waive off service charges will be applicable only till June 30.
As per the information available on the official website of the State Bank of India (SBI) — sbi.co.in, in metro cities, SBI allows 8 free transactions to its regular savings account holders to transact in a month. Beyond this, customers are charged on each transaction.
SBI allows 8 free transactions to its regular savings account holders to transact in a month. These include free transactions from 5 SBI ATMs and 3 ATMs of any other bank. Non-metro cities get 10 free ATM transactions, in which 5-5 transactions can be made from SBI and other banks. It then levies Rs 20 + GST for cash transactions and Rs 8 + GST for non-cash transactions.
Different banks have different ATM withdrawal rules. So, bank customers are advised to reach out to their home branch bank customer care number and find out the rules in this regard.
Account Freeze:
Reportedly, a bank account may become frozen if the banking customer fails to submit documents needed to continue the banking services.
PNB is reducing interest:
Punjab National Bank, popularly known as PNB had announced that it will reduce the interest rate on savings account by 0.50 per cent.
From 1st July, the bank's savings account will get a maximum interest of 3.25 per cent per annum. Interest on balance up to Rs 50 lakh in PNB's savings account will get 3% per annum while balance above Rs 50 lakh will be given 3.25 per cent per annum.
Maximum 3.25% interest:
Bank of Baroda (BOB) had said that it will reduce its benchmark lending rate across various tenors by 15 basis points. Accordingly, the bank will reduce its marginal cost of funds based lending rates (MCLR) across various existing levels and tenors w.e.f. June 12. Consequently, with the cut, EMIs on eligible loan accounts which are linked to MCLR will get cheaper.
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