The phone is fast replacing the card, and in another major step towards this journey, the State Bank of India (SBI) will be launching a new service wherein SBI customers will be able to withdraw cash from ATMs using the bank’s mobile wallet. The only drawback is that each such transaction will attract a fee of Rs 25. Meanwhile, the bank has denied reports that had claimed that SBI has increased service charges on regular ATM transactions to Rs 25. “The service charge on cash withdrawal from ATMs has not been changed for normal savings accounts,” said SBI MD (national banking) Rajnish Kumar. Speaking on the newly launched facility to allow customers to withdraw cash from ATMs using the bank’s mobile wallet, Kumar said, “If a customer has money in SBI Buddy, our mobile wallet, he can now withdraw that money through ATMs. Also, now customer can deposit cash or withdraw cash through business correspondent (BC) from or into our mobile wallet. These facilities were not available earlier.”
In case of cash deposit into the bank’s mobile wallet worth Rs 1,000 done through business correspondents, it will attract a service charge of 0.25 per cent (minimum Rs 2 and maximum Rs 8) plus service tax. In case of cash withdrawal from SBI Buddy worth Rs 2,000 done through business correspondents, it will attract a service charge of 2.50 per cent of the transaction value (minimum of Rs 6) in addition to service tax.