In a major update for exporters who are banking with State Bank of India (SBI), the news is that the bank has revised their export related service charges in order to improve the ease of doing business and provide clear visibility of cost structure to exporters.
Keeping in view the concerns raised by various export promotion councils, SBI said the revised service charges will be payable upfront once in a year as against existing practice of collecting multiple charges for every transaction.
This will result in bringing about operational conveniences to the exporters.
SBI expects that the revised charges will help the exporter community at large and will help in improving the exports. The revised charges are effective from 1 September 2019.
SBI is also the largest mortgage lender in the country. As on 31 March 2019, the bank has a deposit base of over Rs 29 lakh crore with CASA ratio of 45.74% and advances of over Rs 22 lakh crore.
SBI commands around 35% of market share in home loans and auto loans. The bank has the largest network of 22,010 branches in India and an ATM / CDM network of over 58,000.
SBI said the charges would be further bifurcated for MSME and non-MSME customers.
Also, export transactions related service charges for export credit customers will be fixed at 0.1 per cent per annum (excluding GST) of export credit limit, to be recovered at the time of sanction/renewal of the limit.