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

From plagiarism to proxy exams: Galgotias and systemic failure in education

By Sandeep Pandey* Shock is being expressed at Galgotias University being found presenting a Chinese-made robotic dog and a South Korean-made soccer-playing drone as its own creations at the recently held India AI Impact Summit 2026, a global event in New Delhi. Earlier, a UGC-listed journal had published a paper from the university titled “Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis,” which became the subject of widespread ridicule. Following the robotic dog controversy coming to light, the university has withdrawn the paper. These incidents are symptoms of deeper problems afflicting the Indian education system in general. Galgotias merely bit off more than it could chew.

Covishield controversy: How India ignored a warning voice during the pandemic

Dr Amitav Banerjee, MD * It is a matter of pride for us that a person of Indian origin, presently Director of National Institute of Health, USA, is poised to take over one of the most powerful roles in public health. Professor Jay Bhattacharya, an Indian origin physician and a health economist, from Stanford University, USA, will be assuming the appointment of acting head of the Centre for Disease Control and Prevention (CDC), USA. Bhattacharya would be leading two apex institutions in the field of public health which not only shape American health policies but act as bellwether globally.

The 'glass cliff' at Galgotias: How a university’s AI crisis became a gendered blame game

By Mohd. Ziyaullah Khan* “She was not aware of the technical origins of the product and in her enthusiasm of being on camera, gave factually incorrect information.” These were the words used in the official press release by Galgotias University following the controversy at the AI Impact Summit in Delhi. The statement came across as defensive, petty, and deeply insensitive.

Farewell to Saleem Samad: A life devoted to fearless journalism

By Nava Thakuria* Heartbreaking news arrived from Dhaka as the vibrant city lost one of its most active and committed citizens with the passing of journalist, author and progressive Bangladeshi national Saleem Samad. A gentleman who always had issues to discuss with anyone, anywhere and at any time, he passed away on 22 February 2026 while undergoing cancer treatment at Dhaka Medical College Hospital. He was 74.

Growth without justice: The politics of wealth and the economics of hunger

By Vikas Meshram* In modern history, few periods have displayed such a grotesque and contradictory picture of wealth as the present. On one side, a handful of individuals accumulate in a single year more wealth than the annual income of entire nations. On the other, nearly every fourth person in the world goes to bed hungry or half-fed.

From ancient wisdom to modern nationhood: The Indian story

By Syed Osman Sher South of the Himalayas lies a triangular stretch of land, spreading about 2,000 miles in each direction—a world of rare magic. It has fired the imagination of wanderers, settlers, raiders, traders, conquerors, and colonizers. They entered this country bringing with them new ethnicities, cultures, customs, religions, and languages.

Thali, COVID and academic credibility: All about the 2020 'pseudoscientific' Galgotias paper

By Jag Jivan* The first page image of the paper "Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis" published in the Journal of Molecular Pharmaceuticals and Regulatory Affairs , Vol. 2, Issue 2 (2020), has gone viral on social media in the wake of the controversy surrounding a Chinese robot presented by the Galgotias University as its original product at the just-concluded AI summit in Delhi . The resurfacing of the 2020 publication, authored by Dharmendra Kumar , Galgotias University, has reignited debate over academic standards and scientific credibility.

'Serious violation of international law': US pressure on Mexico to stop oil shipments to Cuba

By Vijay Prashad In January 2026, US President Donald Trump declared Cuba to be an “unusual and extraordinary threat” to US security—a designation that allows the United States government to use sweeping economic restrictions traditionally reserved for national security adversaries. The US blockade against Cuba began in the 1960s, right after the Cuban Revolution of 1959 but has tightened over the years. Without any mandate from the United Nations Security Council—which permits sanctions under strict conditions—the United States has operated an illegal, unilateral blockade that tries to force countries from around the world to stop doing basic commerce with Cuba. The new restrictions focus on oil. The United States government has threatened tariffs and sanctions on any country that sells or transports oil to Cuba.

Conversion laws and national identity: A Jesuit response response to the Hindutva narrative

By Rajiv Shah A recent book, " Luminous Footprints: The Christian Impact on India ", authored by two Jesuit scholars, Dr. Lancy Lobo and Dr. Denzil Fernandes , seeks to counter the current dominant narrative on Indian Christians , which equates evangelisation with conversion, and education, health and the social services provided by Christians as meant to lure -- even force -- vulnerable sections into Christianity.

Search This Blog