Banks charges Rs 600 Plus Taxes for not maintaining Minimum Balance
By MEHER ONISA : 08-Mar-2017
NEW DELHI: The unpredicted rise of the monthly average balance, MAB, by HDFC Bank, ICICI Bank, Axis Bank and SBI had left all the bank account holders angry across the nation. HDFC Bank has pinched a penalty as higher as Rs 600 plus surplus taxes. ICICI Bank has inked a fine up to Rs 450, Axis Bank has articulated a penalty charge up to Rs 350 and SBI has scaled a harsh fine that may go up to Rs 100 and more. In the event, the account holder had failed to show the highlighted MAB, then the bank has the authority to wipe out balances in the customer's savings account.
It was the State Bank of India, SBI, who had first propounded the theorem to impose a minimum balance of Rs 5,000, Rs 1,000, Rs 2,000 and Rs 3,000 in metro cities, rural, semi-urban and urban branches. The failures are entitled to pay the penalty ranging from Rs 40 to Rs 80. The semi-urban customers are given to obey with the MAB of Rs 2,000 and the fines range from Rs 25 to Rs 75.
State Bank of India:
SBI, the mascot of India’s public sector financial and banking institution has decided to penalize its customers under non-compliance. The metro customers or the non-retainers of the minimum balance would attract the penalty ranging from Rs 50 to Rs 100. The tight new rules will be made effective from 1 April that has created the public uproar.
The bank’s customers are required to maintain a minimum quarterly balance, MQB, of Rs 2,500. If the aforesaid balance dips below the slab amount of Rs 2,500, then penalty applicable to the holder of the account is Rs 270 and if the average quarterly balance depreciates below Rs 1000, the fine charged would be as solid as Rs 400.
The bank has structures penalties for metro customers who are failing to maintain MAB of Rs 10,000. If the minimum balance falls below Rs 5,000 in a month then the penalty is Rs 450 and if the balance is above Rs 5,000 but less than Rs 10,000 then the penalty Rs 350.
Similarly, the Axis Bank has marked a penalty of Rs 350 for its metro customers along with the taxes for not maintaining a monthly balance of Rs 10,000.
It is mandatory for the customers of the foreign bank like HSBC to maintain an average quarterly balance of Rs 150,000 in their savings account. It has also imposed a quarterly service charge of 0.7 percent plus the applicable taxes.
The recent decision of the banks to apply charges on high-value cash transactions is the stratagem of the Modi administration and his digitalisation move. All the charges will attract an additional cost of 14% service tax, 0.5% Swachh Bharat cess and 0.5% Krishi Kalyan cess.
Ironically, the banks’ decision for discriminating the home branch and non-home branch customers is said to be an absurd practice in the era of core banking.