18.9 C
New Delhi
Sunday 8 December 2019
Economy SBI closes 4.2 mn accounts for not keeping minimum...

SBI closes 4.2 mn accounts for not keeping minimum balance

Notably, the bank had yesterday announced a steep 75% reduction in penalty for non-maintenance of monthly average balance. The new charges will be effective 1 April

Indore: The State Bank of India has closed as many as 41.16 lakh savings bank accounts between April and January for not maintaining the minimum monthly balance, reveals an RTI query.

The nation’s largest lender had re-introduced the charges for non-maintenance of average monthly balance in April last year after a gap of five years.

The bank later revised downwards the charges for not maintaining the minimum balance in October.

Notably, the bank had yesterday announced a steep 75% reduction in penalty for non-maintenance of monthly average balance. The new charges will be effective 1 April.

“Due to provisions of penalty on non-maintenance of minimum balance, the bank has closed 41.16 lakh savings bank accounts between 1 April 2017 and 31 January 2018,” the bank replied to an RTI query filed by Chandra Shekhar Gaud from Neemuch in Madhya Pradesh.

The RTI reply was furnished by the state-run lender on 28 February 2018.

The reply was to a specific query on the number of accounts closed after introduction of charges on non-maintenance of minimum balance from 1 April 2017.

The State Bank has 41 crore savings bank accounts. Of that, 16 crore are under the Pradhan Mantri Jan Dhan Yojna/ basic savings bank deposit (BSBD) and of pensioner, minors, social security benefit holders which are all exempted from the penalty for not maintaining of the minimum balance.

Between April and November, the bank had netted a windfall of Rs 1,771.67 crore, more than its second-quarter profit, from customers for non-maintenance of minimum balance, according to the finance ministry data.

Yesterday, the lender had reduced its charges for non-maintenance of average monthly balance by up to 75%.

The bank has reduced the penal charges for non-maintenance of AMB in the metros and urban centres from a maximum of Rs 50 per month plus taxes at 18% to Rs 15 a month and taxes. For urban and metro customers average monthly balance is of Rs 3,000 per month.

For semi-urban and rural centres, the charges have been reduced from Rs 40 to Rs 12, and Rs 10 per, respectively.

The MBA requirement for the semi-urban area is Rs 2,000, while for the rural centres it is Rs 1,000.

The bank offers its customers the option to shift from regular savings accounts to BSBD accounts, on which no charges are levied, he added.

PTI

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Taliban-US Talks Bode Ill For India, But Can’t Be Helped

On the one hand, infrastructure projects of India worth crores are at stake; on the other, Pakistan is vying for the day a Taliban-ruled Afghanistan can serve it again as a terror launchpad

India Not Ready For End To Death Penalty

India hardly has an efficient apparatus of governance, but if this is what we have, we must live with the death of a killer by a court order

Trump Drives Democrats And Media Crazy

America can never be the same again, even after Trump leaves the White House,” say many, and you can read that anywhere

Balasaheb Thackeray’s Legacy Up For Grabs

The Uddhav Thackeray-led Shiv Sena has failed to live up to the ideals of Balasaheb, leaving a void that the BJP alone can fill

How BJP Pulled Off Maha Coup With Nobody Watching

As Devendra Fadnavis desisted from contradicting Uddhav Thackeray everyday, the media attention moved from the BJP to its noisy rivals
- Advertisement -

Elsewhere

Unnao victim’s father wants Hyderabad-like ‘justice’

The father of the Unnao rape and burn victim said he was not looking for the harshest punishment of the culprits, 'just chase and shoot them'

CJI about Hyderabad encounter: Retribution is not justice

Justice can never be instant. And justice must never ever take the form of revenge. Justice loses its character if it becomes revenge: CJI

Unnao horror: 5 arrested, police guard victim’s uncle, aunt

The victim was attacked when she had just left her home in Unnao for the court in Rae Bareli where she had to attend the hearing of the case of her rape

INC MPs approach Irani menacingly in Lok Sabha

While Smriti Irani and Adhir R Chowdhury were debating cases of crimes against women, INC MPs Kuriakose and Prathapan walked towards her, folding the sleeves of their kurtas, the BJP MP alleged

Lalu Yadav denied bail by HC due to premature application

While Lalu Prasad Yadav was sentenced to 14 years of imprisonment in the Dumka treasury case, he has spent a mere 22 months in the jail

You might also likeRELATED
Recommended to you

For fearless journalism

%d bloggers like this:
Skip to toolbar