As we all are now aware that, from April 1 SBI will charge customers for cash transactions and penalize them when they don’t maintain a minimum balance in their bank accounts.
Statement by SBI bank’s chairman
The SBI bank’s chairman Arundhati Bhattacharya said that- “We have 11 crore financial inclusion accounts — Basic savings and Jan Dhan accounts – and have to manage them as well” and also add that SBI’s requirement for minimum balance is lowest among all banks.
Till 1 March, the total numbers of PMJDY accounts opened by SBI are at 83.6 million.
According to her- “As the costs associated with handling, maintaining, transporting, counting, security and recycling will be paid by the taxpayers. And the more cash is used, the more obstacles in inclusion. There is more credit history when cash goes away. . We need credibility on the loans we give so a transparent credit history of the customer helps,” the SBI chief said adding that most of their customers keep more than Rs 5000 in their account and they don’t need to worry.
Applicable on all depositors
In the last week, SBI declared that from April 1 will penalize for non-maintenance of a monthly average balance (MAB) of Rs 5,000 for branches to 310 million depositors, including pensioners and students.
Government urges SBI for reconsideration
Some sources said that the government had urged SBI to reconsider on their decision on minimum balance requirement.
Rajnish Kumar, Managing Director- National Banking at SBI, said that if a formal communication comes, “We will see. Every product is reviewed but this has to be looked at from a certain perspective… There are many superfluous accounts and create pressure on the system. It was allowed in 2012 by RBI and we review this product every year.”
Charges by different banks
From March 1, some private banks such as HDFC Bank, ICICI Bank and Axis Bank have started charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.
From April 1, SBI will also charge Rs 50 after the first three cash deposits of the month while the for current account holders the cash transaction charges can be as high as Rs 20,000.