'SBI Can't Misinterpret RBI Circulars'- Madras High Court Holds Collection of Cash Handling Charges From Stamp Vendors Illegal
3 years, 1 month ago

'SBI Can't Misinterpret RBI Circulars'- Madras High Court Holds Collection of Cash Handling Charges From Stamp Vendors Illegal

Live Law  

The practice of collecting cash handling charges from stamp vendors who deposit money through treasury challans into the Government account must be done away with, Madras High Court has ruled recently, giving strict directions to the State Bank of India. "In the absence of any such specific direction or instructions from the Reserve Bank of India, the State Bank of India is not entitled to collect any cash handling charges from stamp vendors. Saying that SBI, Chennai is confused about the permissibility of such cash handling charges by its own Head Office, the Finance Department also submitted that with respect to transactions concerning government business, the agency commission is paid by RBI: "For every Government transaction, Agency commission claim for every quarter is prepared by each Agency Bank which is authenticated by the Treasury Officials for claiming the amount by Bank Authority from competent authority." Therefore, the court held that cash handling charges collected by SBI is impermissible and SBi has erred by misinterpreting the RBI Master Circulars: "Perusal of the Master Circulars relied on by the Second and Third Respondents /State Bank of India dated 01.07.2014 and 01.04.2021 reveals that the Second and Third Respondents are unable to establish that there is a direction / instruction / permission granted by the Reserve Bank of India to collect such cash handling charges on Government transactions.

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History of this topic

'Bank Should Remain Vigilant' : Supreme Court Holds SBI Liable To Refund Amount To Customer Who Reported Fraudulent Transaction
2 days, 20 hours ago

'Bank Should Remain Vigilant' : Supreme Court Holds SBI Liable To Refund Amount To Customer Who Reported Fraudulent Transaction

Live Law  

The Supreme Court recently observed that banks cannot shy away from the responsibility to safeguard their customers from unauthorized transactions reported from their accounts. The Court upheld the State Bank of India's liability for the fraudulent and unauthorized transactions reported in the customer's bank account. The bench was hearing the SLP filed by the SBI against the Gauhati High Court's …

Karnataka government puts circular on hold for 15 days ordering suspension of all transactions with SBI, PNB
4 months, 3 weeks ago

Karnataka government puts circular on hold for 15 days ordering suspension of all transactions with SBI, PNB

India TV News  

The Karnataka government today kept its circular in abeyance for 15 days, which prohibited all business transactions with the State Bank of India and the Punjab National Bank. "After considering the banks' requests, the Chief Minister has directed officials of the Finance Department to keep the circular in abeyance for 15 days," the state government said. It said that putting …

Banks Ought To Investigate Fraudulent Transactions Per RBI Guidelines, Panchkula District Commission Holds SBI Liable
10 months, 3 weeks ago

Banks Ought To Investigate Fraudulent Transactions Per RBI Guidelines, Panchkula District Commission Holds SBI Liable

Live Law  

The District Consumer Disputes Redressal Commission, Panchkula bench comprising Satpal, Dr Sushma Garg and Dr Barhm Parkash Yadav held State Bank of India liable for deficiency in services for its failure to provide safety and security of electronic banking transactions which resulted in unauthorized transactions of Rs. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, Panchkula, Haryana …

Fraudulent Electronic Transfer, Customer Not Liable, Bangalore District Commission Orders SBI To Refund, Pay Compensation And Legal Costs
1 year, 2 months ago

Fraudulent Electronic Transfer, Customer Not Liable, Bangalore District Commission Orders SBI To Refund, Pay Compensation And Legal Costs

Live Law  

The Additional District Consumer Disputes Redressal Commission-III, Bangalore bench comprising Sri Shivarama K., Sri Chandrashekar S. Noola and Smt. The District Commission cited a circular issued by the RBI which exempts customers from liability for unauthorized electronic banking transactions. Observations by the Commission: The District Commission held that the SBI had failed to safeguard the complainant's accounts and had not …

'Bank Liable If Customer Suffers Loss Due To Unauthorized Transactions': Kerala Consumer Forum Orders Compensation
1 year, 4 months ago

'Bank Liable If Customer Suffers Loss Due To Unauthorized Transactions': Kerala Consumer Forum Orders Compensation

Live Law  

The Ernakulam Consumer Disputes Redressal Commission recently directed the State Bank of India to return an amount of Rs. But one thing is oetain that where a bank is providing service to its customer, it owes a duty to exercise reasonable care to protect the interests of the customer. Needless to say that a bank owes a duty to its …

SBI’s u-turn: No slip, ID proof needed to swap ₹2,000 notes
1 year, 7 months ago

SBI’s u-turn: No slip, ID proof needed to swap ₹2,000 notes

The Hindu  

In a sudden volte face following a huge public outcry, the State Bank of India — the country’s biggest bank — on Sunday withdrew its decision on the mandatory filling of a slip for exchange of ₹2,000 bank notes at its branches. “In partial modification of instructions, it has been decided that the facility of exchange of ₹2,000 denomination bank …

SBI ATM Cash Withdrawal Charges: SBI Changes Rules For Cash Withdrawals From July 1
3 years, 6 months ago

SBI ATM Cash Withdrawal Charges: SBI Changes Rules For Cash Withdrawals From July 1

ABP News  

State Bank of India is going to bring changes in the service charge from July 1. That is, from Thursday, SBI will revise the service charges for withdrawing cash from its ATMs and bank branches. According to the SBI website, BSBD account holders will be able to make four free cash withdrawals per month from ATMs and bank branches. Senior …

SBI Rule Change: Cash Withdrawal from ATM to Cheque Books, Check New Charges
3 years, 7 months ago

SBI Rule Change: Cash Withdrawal from ATM to Cheque Books, Check New Charges

News 18  

India?s largest public sector bank, the State Bank of India has introduced new rules for cash withdrawal at its branches and ATMs. As per the official notification issued by the bank, the new rules will be applicable for Basic Savings Bank Deposits account holders of SBI, and will come into effect from July 1, 2021. For every additional cash withdrawal, …

SBI clarifies on excessive charges on transactions in zero-balance accounts
3 years, 8 months ago

SBI clarifies on excessive charges on transactions in zero-balance accounts

Hindustan Times  

The State Bank of India on Thursday released a clarification on reports stating that the bank, along with several others, has been levying ‘excessive charges’ on some services provided to those with zero-balance accounts or Basic Savings Deposit Accounts. SBI has stopped recovering charges in such accounts on all digital transactions w.e.f. According to the Reserve Bank of India's decision …

SBI collects Rs 300 crore from zero balance accounts for certain services in 5-year: Study
3 years, 8 months ago

SBI collects Rs 300 crore from zero balance accounts for certain services in 5-year: Study

India TV News  

Several banks, including State Bank of India, have been imposing excessive charges on certain services provided to poor persons having zero-balance or Basic Savings Bank Deposit Accounts, a study by the IIT-Bombay has revealed. The study observed that the SBI's decision to levy a charge of Rs 17.70 for every debit transaction beyond four by the BSBDA account holders cannot …

HC asks RBI, SBI to maintain status quo on accounts of three Anil Ambani-led firms
4 years ago

HC asks RBI, SBI to maintain status quo on accounts of three Anil Ambani-led firms

Live Mint  

The Delhi high court on Wednesday directed the State Bank of India and the Reserve Bank of India to maintain status quo concerning the accounts of Anil Ambani’s Reliance Communications Ltd, Reliance Telecom and Reliance Infratel. A petition by RCom’s former director Punit Garg has challenged certain vires of RBI circular 2016 on the classification of the accounts as fraud. …

Attention SBI account holders! New bank service charges, penalties from today. Details inside
5 years, 3 months ago

Attention SBI account holders! New bank service charges, penalties from today. Details inside

India TV News  

SBI new service charges and penalties: India's largest lender, State Bank of India has revised its service charges and penalties with effect from today, i.e 1st October 2019. The bank has revised service charges including fee for non-maintenance of average monthly balance, ATM withdrawal from SBI branches and cash deposit transactions. Attention SBI account holders: New bank service charges, penalties …

SBI sought issuance of 147 Look Out Circulars in last five month: RTI
5 years, 4 months ago

SBI sought issuance of 147 Look Out Circulars in last five month: RTI

Live Mint  

The Country's largest public sector bank -- State Bank of India -- sought issuance of 147 Look Out Circulars in the last five months in connection with bank fraud cases, an RTI response from the bank said. Although top officials of public sector bank were empowered last year to seek issuance of LoC against individuals, relevant guidelines were framed by …

SBI ATM withdrawal rules: Free transactions, charges and other details
5 years, 6 months ago

SBI ATM withdrawal rules: Free transactions, charges and other details

Live Mint  

The charges you pay for using Automated Teller Machines may change soon. Currently, the State Bank of India offers eight free transactions to regular savings bank account holders, including five transactions at SBI ATMs and three at other bank ATMs. In non-metros, such account holders get 10 free transactions, including five at SBI ATMs and five at others. The bank …

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