CPI criticises SBI's increased min balance for savings A/Cs

Criticising SBI's decision to raise the minimum balance required to be maintained in savings account to as high as Rs 5,000, the Communist Party of India (CPI) today said banks are now finding it difficult to tackle the issue of rising NPAs.
The country's largest lender has increased the monthly average balance (MAB) requirement to as high as Rs 5,000 in six metros. For urban and semi-urban branches, the MAB has been fixed at Rs 3,000 and Rs 2,000, respectively.
"The Central Secretariat of CPI severely condemns the decision of State Bank of India to make it compulsory to have a minimum amount of Rs 5,000 and Rs 2,000.

"It seems that the banks are no more in a position to bear with the burden of rising non-performing assets on the one side and the lower credit off take on the other hand," the Communist Party of India (CPI) said in a statement.
Observing that on one side the government is forcing that all financial transactions should be through the banks and digitalisation and crores of citizens were forced to open the bank accounts, the CPI said "restricting the ATM withdrawals will create serious problems for many of them".
The party pointed out that all the tall talks of higher growth and demonetisation as a crusade against black money are proving to be mere hoodwinks to save and protect the corrupt and loan defaulters.

"Instead, the masses who are being forced to open bank accounts with unheard of formalities are being fleeced to compensate the heavy losses to the banks due to rising NPAs and demonetisation blues," the party said.

Noting that the banks that they are dependent fully on account holders especially the large number of middle, upper and lower class citizens, the CPI said any additional curb namely fees for more transactions will force the customers to withdraw huge money and store huge cash at home.
"This will affect the banking sector very badly," it said.
The party said the government must dare to take action against the defaulters including those guilty of NPAs, confiscate their property, recover their loans and other dues at the earliest, instead of compensating banks from non-defaulter depositors' hard-earned money.

State Bank of India has decided to increase manifold the minimum balance required for maintaining savings account from April 1, hitting 31 crore depositors including pensioners and students.
However, these restrictions are not applicable to basic savings account and corporate salary accounts.
Savings bank account holders of SBI and its five associates (merging with it on April 1) will have to maintain the monthly balance or else they will invite a penalty ranging from Rs 20 (rural branches) to Rs 100 in (metro cities).
SBI has 31 crore savings bank accounts.
As of now, monthly average balance (MAB) for a savings bank account is Rs 500 without facility of cheque book and Rs 1,000 with cheque book across the country.