SBI justifies penalty; says need money to bear Jan Dhan costs

Source: The Hitavada      Date: 09 Mar 2017 09:42:22


Mar 8,


FACING a backlash for levying penalty on non-maintenance of minimum balance in accounts, SBI on Wednesday justified its move saying the bank needs to impose some charges to balance the “burden” of managing a large number of no-frills Jan Dhan accounts.

The bank also said it had not received any “formal communication” from the Government for re-considering the penalty and it would take a call “if something comes”.
It also clarified that the penalty would not apply to Jan Dhan accounts.

Last week, the country’s largest lender decided to re-introduce penalty on non-maintenance of minimum balance in accounts and also revised charges on other banking services. The new charges would be applicable from April 1. The move by the State-run banking major has faced a lot of criticism, including from the opposition parties.

“Today, we have lot of burden such as we have 11 crore financial inclusion or Jan Dhan accounts. To manage such a large number of Jan Dhan accounts, we need some charges. We have considered many factors and after analysing carefully, we have taken this step,” SBI Chairperson, Arundhati Bhattacharya told reporters here on the sidelines of a women entrepreneurs’ national convention.