Rs. 5000 minimum balance in SBI Saving Bank a/c is injustice to common men

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State bank of India (SBI) has imposed  penalty (w.e.f. 1st April 2017) on the saving bank accounts for not maintaining minimum average balance (MAB). In metro areas, minimum average balance requirement is Rs. 5000. 

We understand that MAB requirement is mainly to cover operational expenses. But, the limit should be justified for the cost incurred.

·    In July 2012, SBI decided to get rid off MAB requirements to attract new customers. [source: Introducing it back, is like fooling around the customers who made their decision based on this. Currently, we do not have any portability mechanism for bank accounts across different banks. Thus, customers who have signed up are trapped in some sense.  

·       Other PSU banks are giving equivalent facilities with MAB of Rs. 1000. Why SBI needs 5 times more operational expenses to maintain the accounts?

·     SBI also deducts additional charges for SMS, Cheque book, ATM card which many of the other PSU banks offer for free. Thus, operational expenses for extra services are addressed with these additional charges. Then, why SBI incurs higher operational expenses?

·     SBI serves more than 31 crores savings account . [source: Large volume must bring down the operational cost as compared to other banks.

The Bank works as trustee of public money, it has the huge responsibility to consider the every aspect of its diversified customers. Non maintenance of MAB charges should be based on their income not on the basis of where there reside.

Government is pushing forwards reforms wherein citizens are encouraged to use banking channel. Whereas, Govt. owned bank is taking decisions which are detrimental to this push for banking.

Maximum of SBI's customers belong from a middleclass or lower middleclass background. And it's very difficult for them to maintain ₹5000 in their account as monthly average balance. Even in metro cities like Delhi, Kolkata, Mumbai etc the number of middleclass families is quite big. They save their hard earned money in banks for their future. And giving penalty for saving their money in bank accounts is not justified.

We request SBI, to reconsider MAB limit and reduces the limit in an affordable range for common people. Also, Refund the amount deducted (w.e.f. 1st April 2017) from common men pocket for not maintaining MAB.

Large customer base is the high value asset for your organisation. You should focus more on innovations to reduce operational costs rather than burdening your large customer base. 


Patron customer, State bank of India.


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