A report published by a professor of Indian Institute of Technology Bombay on Monday, August 20th states that the charges applied by The State Bank of India’s for the non-maintenance of minimum balance were unreasonable.
SBI first started charging fees for non-maintenance of minimum balance back in April 2017, a move which was stopped for 5 years before that. The monthly fees ranged anywhere between Rs 20 to Rs 100 till September 2017, however they were later slashed in October 2017.
As per the data provided by India’s finance ministry, it shows that for the financial year 2017, SBI collected Rs 24.34 billion just for a penalty on non-maintenance of minimum balance.
Back in April 2018, these charges were slashed by the bank by almost 80 percent, and currently, the charges range from Rs 5-Rs 15.
In an earlier report, the public sector lender had said that only 60 percent of its accounts are subject to these charges.
The State Bank of India also went on to say that people should convert their accounts to Basic Deposit Accounts and Basic Savings Accounts, as by doing so they can avoid a penalty for non-maintenance of balance.
A statement published by the SBI in the aforementioned report reads as follows: “Out of the 255 million savings bank accounts in question for not maintaining minimum monthly average balance, SBI recovered Rs 2.35 billion as a penalty from only 38.9 million savings bank accounts for the month of April 2017.”
The report also said, in order to “not get portrayed as exploitative for the past year,” the bank will have to reverse the penalties collected in FY 17 for non-maintenance of minimum balance.