SBI has collected more than 1000 crores in the penalty from its customers for not maintaining the minimum balance in their Account. The data submitted by public sector banks regarding the penalty fees collected show growth compared to the last year. SBI is leading the charge with 1771 crores of rupees.
This amount is more than its net profit for the second quarter which is 1581 crores. This penalty amount collected is only for the April to November 2017. While it was one of the last banks to impose fines on accounts for not maintaining the minimum balance, it has become the leader in collecting fines without delay or default.
And, banks in recent times have become too sincere in their ways to collect as much money as much possible from customers. Earlier, this scheme of minimum balance was started by private banks, but soon Government banks followed despite much furore, and cry nothing happened. They reimposed the fine after five years. Basic saving account, Jan Dhan account and pension accounts are exempted from the penalty. PNB is second in the list with 97 crores.
Public Banks have found a new and greedy method to generate profits by fining the people in the cruelest way possible. Their big bad loans could not be written off by meagre amounts they collect from the general public, but surely these tactics used by banks bring a very bad name to the very brand they represent.
These charges are divided into the kind of place your branch resides, such as metro, urban and rural. The minimum amount to be kept in the account varies accordingly. The Minimum Monthly Average balance(MAB) has become a very fine tool for banks to reduce their NPAs. SBI has 42 crores of Saving accounts. The total penalty collected by public sector banks due to non-compliance with the minimum monthly average balance is more than 2000 crores. it is an addition to the long list of charges that a bank collects from its customers.
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We might see more such well-structured charge to make customers even guilty of owning money. Banks, which in recent time have come under attack due to bad NPAs were trying to find ways and means to cut costs. the uproar around this scheme is old since private banks started enforcing measures to the saving accounts in the country, but none thought that one-day public sector banks would have to take the same route.
Where we are headed in the banking is clearly visible from the budgets of each financial year, where crores of the funds are infused in the banks to maintain their liquidity. this occurs despite banks being one of the top government financial bodies in the economy.
Recent consolidation of the SBI subsidiaries by the government of India is a step towards bringing more centralized approach and easy management of the assets. People have been protesting against MAB since it was launched but as given the circumstance, the people who earn less are penalized more, and then the dreams of digitization die an ironical death.
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