Contact Your Financial Adviser Money Making MC
9
March 2017
Providing
a rationale for re-introducing penalty for non-maintenance of minimum balance
in its savings accounts from April 1, State Bank of India chief Arundhati
Bhattacharya on Wednesday said the public sector lender needs funds to balance
the oeprational costs of Jan Dhan accounts.
"Now
there is a burden of a lot of things. We have 11 crore financial inclusion
accounts - basic savings and Jan Dhan accounts - and have to manage them as
well," Bhattacharya said on the sidelines of a women entrepreneurs'
national convention here.
"SBI
was the only bank that didn't have this as we have removed it in 2012,"
she said.
This
condition of maintaining minimum balance will not be applicable to the Jan Dhan
accounts, she added. The Total Investment
& Insurance Solutions
According
to reports, the government has asked SBI to reconsider its decision to levy the
penalty, though Bhattacharya said that the bank has not received any formal
request on this.
She
also said that SBI's requirement for minimum balance is lowest among all
banks.
The
SBI has made it mandatory for savings accounts in metropolitan areas to
maintain a minimum balance of Rs 5,000, Rs 3,000 in urban areas, Rs 2,000 in
semi-urban areas and Rs 1,000 in rural areas, from April 1. The Total Investment & Insurance Solutions
These
charges will be based on the difference between the minimum balance required
and the shortfall. For metropolitan areas, if the shortfall is greater than 75
per cent. the charges would be Rs 100 plus service tax. The Total Investment & Insurance Solutions
If
the shortfall is between 50-75 per cent, the bank would charge Rs 75 plus
service tax and for below 50 per cent shortfall, a fee of Rs 50 plus service
tax would be levied, according to the SBI notification of new charges. The Total Investment & Insurance Solutions
Similarly,
for rural areas, the penalty for non-maintenance of minimum balance ranges from
Rs 20-50 plus service tax. The Total
Investment & Insurance Solutions
A
number of private sector banks already have the condition for maintenance of
minimum balance. The Total Investment & Insurance
Solutions
ICICI
Bank savings accounts need to have a minimum balance of Rs 10,000 in urban and
metropolitan areas and Rs 5,000 in semi-urban areas.
In
an HDFC savings account, the user needs to have a minimum balance of Rs 10,000
in urban and metropolitan areas, Rs 5,000 in semi-urban areas and Rs 2,500 in
rural areas.
Axis
Bank also has the condition of maintaining a minimum balance of Rs 10,000 in
its savings accounts.The Total Investment
& Insurance Solutions
No comments:
Post a Comment