SBI big announcement for customers, this rules changing from October 1, 2020

New Delhi: State Bank of India has announced to reduce the average monthly balance. For anyone having account in metro and urban centre, the AMB will be Rs 3,000 while for Rural branches it will be Rs 1000. The charge for failing to maintain this amount will also be reduced. If a customer fails to maintain Rs 3,000 as AMB in metro and urban centre branches, and falls short by 50 per cent, the individual will be charged Rs 10 plus GST. If the account holder falls short by more than 50-75 per cent, he/she will have to pay a fine of Rs 12 plus GST. If the account holder falls short by more than 75 percent, it will invite a penalty of Rs 15 plus GST.

Among the other major things that will kick in from October 1 are Tax Collected at Source (TCS) on Liberalised remittances scheme with effect from October 1, 2020.

SBI has tweeted the important notice for all the SBI Customers.

The SBI tweet said that the TCS on Liberalised remittances scheme will be levied over and above teh remittance amount of Rs 7 lakh by a customer in a financial year and will be effective from October 1.

The limit f Rs 7 lakh will be determined by adding all LRS remittances (including out of disbursement of education loan) during the Financial year.

In case of remittances made for overseas tour programma packages, TCS is applicable on all remittances even if the amount is less than 7 lakh, SBI said. SBI tweeted:

Here’s an important notice for all our SBI Customers.
#TCS #IncomeTax #SBI #StateBankOfIndia pic.twitter.com/oecpow8WZq

— State Bank of India (@TheOfficialSBI) September 22, 2020

Under the Liberalised Remittance Scheme, authorised dealers may freely allow remittances by resident individuals up to USD 2,50,000 per Financial Year (April-March) for any permitted current or capital account transaction or a combination of both. The Scheme is not available to corporates, partnership firms, HUF, Trusts, etc. The Scheme is available to all resident individuals including minors. In case of remitter being a minor, the Form A2 must be countersigned by the minor’s natural guardian, reads an RBI document.