Madras HC rebukes SBI for its 'administrative arrogance'

CHENNAI: Censuring the State Bank of India (SBI) for its 'administrative arrogance' in asking stamp vendors who opposed illegal collection of cash handling charges 'to approach any other bank and continue their banking operations', the Madras high court has restrained the bank from collecting such charges.
Justice S M Subramaniam has also directed the bank authorities to initiate disciplinary proceedings against bank officials who made such statements in the counter affidavit filed in the high court.
"The tenor of the statement is a threat to the public administration, as the stamp vendors have no option but to deposit money only in government accounts at SBI branches," the court said.
The court then directed the general manager of SBI to sensitize the officials to develop good conduct with customers and the citizens, who all are approaching the bank for transactions.
"These employees/officials must be reminded that, from and out of the transactions through the customers and citizens, the salary to these employees are paid. Thus, they are expected to maintain good conduct and honour the rights of the persons approaching the bank," the judge said. The issue pertains to a batch of pleas moved by P S Shanmuga Sundaram and other stamp vendors challenging the validity of collecting cash handling charges by the bank.
Though the bank contended that the charges had been collected only as per a master circular of the RBI, they could not prove the same.
The state government also informed the court that though it has been made clear to the bank that they cannot collect such charges from stamp vendors as such charges are already paid by the government to the bank, SBI refused to accept the same.
To this, SBI authorities submitted that they are not bound by the circulars of the state government as the state does not have administrative control over the bank.
Refusing to concur, the court said, when an officer of the state is performing their solemn function the bank is expected to respond to such communications in an appropriate manner. The court then declared the collection of cash handling charges of 15 per bundle illegal