The reintroduction of minimum balance levy in savings bank (SB) accounts by the State Bank of India (SBI) after five years is justified. It is necessary to compensate for the maintenance of 110 million no-frills Jan-Dhan accounts despite the SBI making sizeable profits every year.
Many pensioners and family pensioners, almost all of whom are senior citizens draw their pension through SB accounts. With the merger of other associate banks with the SBI from April 1, it will have the highest number of such customers in India.
For those drawing the minimum pension amount of Rs 9,000 or even double that, maintaining a minimum balance of Rs 5,000 — even Rs 2,000 — merely because they live in a non-urban area would be an infliction. SBI should exempt pensioners’ SB accounts from the minimum balance levy.
George Cheriyan Chennai