No reduction in bank charges, State Bank of India continues to 'fleece' citizens

Counterview Desk
The Financial Accountability Network (FAN), India, a collective of civil society organisations, unions, people’s movements and concerned citizens to raise the issue of accountability and transparency of the national financial institutions, in a public statement has said in a public statement that media reporting on bank charges is misleading, pointing out, State Bank of India (SBI) "continues to fleece its customers."

Text:

There has been misleading media reports, which claimed that SBI has revised various services charges. The reports claimed that there has been a reduction in minimum balance required to maintain monthly, reduction in penalty for not maintaining minimum balance and restrictions on number of cash transactions allowed at the bank branches.
A close scrutiny of documents reveals that there have not been any reductions that are being claimed in the media. The only change in charges by SBI has been reducing of the SMS alert service charges from Rs 15/month to Rs 12/month, and the removal of service charges for online National Electronic Funds Transfer (NEFT) and Real-time Gross Settlement Transaction (RGST).
The latter was done after the Reserve Bank of India (RBI) waived off the charges levied by them for NEFT and RTGS transactions. The last few weeks, SBI, in fact, has included charges for the newly introduced services like Rupee Prepaid Cards.

SBI’s latest notification of revised service charges, which will be applicable from October 1, 2019 does not mentioned changes in existing charges. At a time when there is a strong demand from the people to reduce the bank charges, media reports like these are not ust misleading but irresponsible.

Monthly minimum balance

SBI started penalizing its saving account holders for not maintaining prescribed minimum balance in April 2017. Later in October 2017, the bank reduced the minimum amount to maintain monthly and penalty for not maintaining the same in the saving accounts. Again, in April 2018, bank further reduced the penalty for not maintaining the monthly minimum balance. The list changes made can be seen in the table.
The two-time reduction in penalty within 12 months happened after much criticism the bank got from its customers and media. Between April-November 2017, SBI earned more money through penalizing the customers for not maintaining minimum balance then its own profit from second quarter of the same year. SBI earned Rs 1,771 crore in eight months by charging people, while their July – September quarter net profit was Rs 1, 581.55 crore.
In the new notification issued by SBI, there is no reduction in both – the minimum monthly balance requirement and the penalty for not maintaining it.

Service charges for Immediate Payment Service (IMPS) and RTGS transactions

After waiving off the charges for NEFT and RTGS transactions by RBI in June 2019, the commercial banks were also asked to pass the benefit to the customers. SBI revised charges for NEFT and RTGS in August 2019. It reduced the charges for online NEFT & RTGS to NIL and for same transactions at bank branches which can be seen in the table below.

As of now, not all the banks have transferred the benefit of reduction in NEFT and RTGS charges by RBI and they continue to charge as per their board approved service charges.

Deposit and withdrawal limits and charges beyond allowed number of free transactions

As per SBI notification (with effect from April 2017) which is still available on its website: Saving account holders with Rs 25,000 or below as the minimum balance in previous month, can have 3 cash deposits and 2 cash withdrawals from bank branch. Thereafter the bank is charging Rs 50 per transaction for cash deposit as well as cash withdrawal.
We would like to reiterate that the service charges are nothing but transferring the loss made due to corporate bad loans on to the people. Hence, we demand the RBI and the banks to remove all charges that are burdening the people.

Comments

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat* Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu. He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Justice for Zubeen Garg: Fans persist as investigations continue in India and Singapore

By Nava Thakuria* Even a month after the death of Assam’s cultural icon Zubeen Garg in Singapore under mysterious circumstances, thousands of his fans and admirers across eastern India continue their campaign for “ JusticeForZubeenGarg .” A large digital campaign has gained momentum, with over two million social media users from around the world demanding legal action against those allegedly responsible. Although the Assam government has set up a Special Investigation Team (SIT), which has arrested seven people, and a judicial commission headed by Justice Soumitra Saikia of the Gauhati High Court to oversee the probe, public pressure for justice remains strong.

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Licy Bharucha’s pilgrimage into the lives of India’s freedom fighters

By Moin Qazi* Book Review: “Oral History of Indian Freedom Movement”, by Dr Licy Bharucha; Pp240; Rs 300; Published by National Museum of Indian Freedom Movement The Congress has won political freedom, but it has yet to win economic freedom, social and moral freedom. These freedoms are harder than the political, if only because they are constructive, less exciting and not spectacular. — Mahatma Gandhi The opening quote of the book by Mahatma Gandhi sums up the true objective of India’s freedom struggle. It also in essence speaks for the multitudes of brave and courageous individuals who aspired to get themselves jailed for the cause of the country’s freedom. A jail term was a strong testimony and credential of patriotism for them. The book has been written by Dr Licy Bharucha, an academically trained political scientist and a scholar of peace studies and Gandhian studies, who was closely associated throughout her life with those who made the struggle for India’s independence the primar...

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

India’s expanding coal-to-chemical push raises concerns amidst global exit call

By Rajiv Shah As the world prepares for COP30 in Belém , a new global report has raised serious alarms about the continued expansion of coal-based industries, particularly in India and China. The 2025 Global Coal Exit List (GCEL), released by Germany-based NGO Urgewald and 48 partners, reveals a worrying rise in coal-to-chemical projects and captive power plants despite mounting evidence of climate risks and tightening international finance restrictions.

Search This Blog