Reconsider minimum balance requirements

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State bank of India (SBI) recently announced that, w.e.f. 1 Apr, 2017 it will impose penalty on the accounts not maintaining minimum average balance (MAB). In metro areas, minimum average balance requirement will be Rs. 5000. 

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

  1. Other PSU banks are giving equivalent facilities with MAB of Rs. 1000. Why SBI needs 5 times more operational expenses to maintain the accounts?
  2. 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?
  3. Customer always suffers from longer queues at SBI branches, ATMs as compared to other banks. Thus, SBI is not offering any privileged services to their customers to justify higher charges.
  4. SBI serves more than 31 crores savings account . [source: https://twitter.com/TheOfficialSBI/status/838024521907113985 Large volume must bring down the operational cost as compared to other banks.
  5. In July 2012, SBI decided to get rid off MAB requirements to attract new customers. [source: http://www.businesstoday.in/money/banking/no-minimum-balance-required-for-sbi-savings-a-c/story/186008.html 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.  

We request SBI, to reconsider MAB limit. Make this limit to Rs. 1000 which is on par with other PSU banks.

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.

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. 

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Patron customer, State bank of India.

 



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