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1-min read

Banks Making Big Money Through Jan Dhan Accounts, Show Govt Data

State Bank of India collected Rs 1,771 crore during April-November 2017 as charges from customers who did not maintain their minimum monthly average balance.

Rounak Kumar Gunjan | News18.com@Rounak_T

Updated:January 2, 2018, 11:47 AM IST
Banks Making Big Money Through Jan Dhan Accounts, Show Govt Data
Representative photo. (Image: Reuters)

New Delhi: According to data provided by the finance ministry, India's largest lender State Bank of India collected Rs 1,771 crore during April-November 2017 as charges from customers who did not maintain their minimum monthly average balance (MAB) in their accounts.

SBI has a total of 42 crore savings bank accounts of which 13 crore are Basic Savings Bank Deposits Accounts and Pradhan Mantri Jan Dhan Yojana accounts. SBI did not collect any money from levy of charges for non-maintenance of MAB during the 2016-17 financial year. The charges were re-introduced after a gap of five years during the current financial year.

The figure is more than the state-run bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September.

After SBI, Punjab National Bank recorded the highest collection of Rs 97.34 crore through levy of such charges during the April-November period followed by Central Bank of India’s Rs 68.67 crore and Canara Bank’s Rs 62.16 crore.

Punjab and Sind Bank is the only state-run lender which did not levy any charges during April-November and in 2016-17.

SBI revised service charges on various transactions, including cash deposits and for failing to maintain monthly average balance in savings bank accounts from April 1, 2017. These charges were slightly relaxed in September when SBI reduced the MAB requirement for customers in metro cities to Rs 3,000 from Rs 5,000. The bank also exempted pensioners, beneficiaries of social benefits from the government and accounts of minors from levy of these charges with effect from October 1. This exemption was in addition to Basic Savings Bank Deposits Accounts (BSBD) customers.

Between April and September, the SBI imposed service charge for failure in MAB in metro, urban and rural centres. For metro centres, the failure to meet the Rs 5000-balance attracted Rs 50 charge for 50 percent shortfall, Rs 75 for shortfall between 50-75 percent and Rs 100 for 75 percent or more shortfall.

In the case of urban centres, failure to meet Rs 3000 MAB will attract Rs 40 service charge, Rs 60 for 50-75 percent shortfall and Rs 80 for 75 percent or more shortfall. Apart from charges related to non maintenance of MAB, SBI had an annual maintenance fee of Rs 125-300 for debit cards depending on the category of the card.

On September 25, the SBI announced a downward revision in charges for non-maintenance of MAB ranging from 20 percent to 50 percent across all population groups and categories.

| Edited by: Mayur Borah
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