Opposition on Thursday expressed concern over increase in service charges and reduction of interest rate on savings bank account by the State Bank of India (SBI), terming it anti-people and saying it will affect over 34 crore customers. Initiating a debate on the State Banks (Repeal and Amendment) Bill 2017, S P Muddahanumegowda (Cong) said nearly 34 crore people would be affected by the increase in minimum balance.
The Bill which later passed by the House seeks to extinguish the existence of five associate banks following their merger with the SBI from April one this year. Citing an example, he said “the minimum balance has been raised to Rs 1,000 which has affected the poor and the farmers. Banks have also put charges on cash withdrawal ...All these decisions are anti-poor.”
Saugata Roy (TMC) said the SBI has reduced the interest rate on savings bank account to 3.5 per cent from 4 per cent earlier this month. At the same time, it has also increased the penalty for not maintaining minimum balance in the savings bank account, he said, adding that this will harm 31 crore people. The bad loan level of `1.40 lakh crore which is highest in the banking sector reflects that SBI is badly managed, he said.
“Why did SBI Chairman travel with the Prime Minister to provide loan for financing the acquisition of mines in Australia,” the TMC leader asked.