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

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

What Epstein Files reveal about power, privilege and a system that protects abuse

By Bhabani Shankar Nayak* The Jeffrey Epstein scandal is not merely the story of an individual offender or an isolated circle of accomplices. The material emerging from the Epstein files points to structural conditions that allow abuse to flourish when combined with power, privilege and wealth. Rather than a personal aberration, the case illustrates how systems can create environments in which exploitation becomes easier to conceal and harder to challenge.

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...

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

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...

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...

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

How Budgam by-poll has changed the J&K government’s way of working

By Raqif Makhdoomi* The political landscape in Jammu & Kashmir has shifted markedly since the Budgam by-election was announced. With Aga Muntazir Mehdi now elected as the MLA from Budgam, celebrations continue at his residence as people congratulate him on what many describe as an exceptional victory. He will represent Budgam for the next four years, and his performance during this term will determine his future in the constituency.

NHRC seeks action report on contaminated water outbreak in Ahmedabad

By A Representative The National Human Rights Commission (NHRC) in New Delhi has issued notices to the Secretary of the Water Supply Department in Gandhinagar , the Ahmedabad District Collector and the Municipal Commissioner of Ahmedabad, seeking an action-taken report within four weeks on allegations of human rights violations arising from a major outbreak of waterborne diseases in Behrampura , Danilimda ward of Ahmedabad city.

Search This Blog