Skip to main content

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

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.

Gender violence defies stringent laws: The need for robust social capital

By Dr. Manoj Kumar Mishra*  The tragic death of Miss Soumyashree Bisi, a 20-year-old student from Fakir Mohan College, Balasore, who reportedly self-immolated due to harassment, shocked the conscience of Odisha. Even before the public could process this horrifying event, another harrowing case emerged—a 15-year-old girl from Balanga, Puri, was allegedly set ablaze by miscreants. These incidents are not isolated; they highlight a disturbing pattern of rising gender-based violence across the state and the country.