'In full compliance with govt directive': SBI on accusation of withholding Rs 164-crore refund from Jan Dhan a/c holders

Reacting to a report on November 22 which said the State Bank of India (SBI) is yet to refund Rs 164 crore of undue fee charged from Jan Dhan account holders, the country's largest state-run lender said it is working "in full compliance" with the government directive in this regard.

“There has been a news article on 22.11.2021 that SBI is not refunding charges recovered from the customers on digital transactions. We confirm that Bank is in full compliance with the Government and regulatory directives in this regard," the bank said in a statement.

According to a report prepared by IIT Bombay Professor Ashish Das, the SBI has refunded only Rs 90 crore so far out of the transaction fee levied on account holders of Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme.

It said that from April 2017 to September 2020, SBI had collected over Rs 254 crore towards at least 14 crore UPI/ RuPay transactions by charging Rs 17.70 per transaction on BSBDA (Basic Savings Bank Deposit Account) customers under the Pradhan Mantri Jan Dhan Yojana (PMJDY).

"On directions from the government, SBI has returned just about Rs 90 crore, thereby withholding the bigger chunk of at least Rs 164 crore with itself," the report claimed.

Since June 1, 2017, unlike any other bank in India, the report said, SBI had charged Rs 17.70 for every debit transaction beyond four a month.

Debit transaction means any withdrawal transaction that includes cash withdrawal, Unified Payments Interface (UPI), Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), Real-time Gross Settlement (RTGS), pre-authorised standing instruction and cheque.

On August 30, 2020, the Central Board of Direct Taxes (CBDT) advised banks to refund the charges collected since January 1, 2020, on transactions carried out using the prescribed digital payment modes that include the UPI and the RuPay debit card, and not to impose charges on future transactions carried out through such modes.

The SBI, in its statement, said it has implemented the changes as directed by the central tax body. "SBI has made all digital transactions free to the FI (Financial Inclusion) customers w.e.f. 01.01.2020. Further, up to four cash withdrawals in a month are free. Fully free digital transactions and four free cash withdrawals are enabling these customers to meet all their banking requirements," it said.

The bank further added that it has been at the "forefront of the Financial Inclusion initiative of the Government of India" and has an estimated FI customer base of 13.76 crore.

(With PTI inputs)