CHENNAI: It’s been almost a month since State Bank of India, the country’s largest public sector bank, raised the minimum balance requirement for its savings account-holders (SB). The decision has impacted students and lower middle class groups the most, with several labelling it as customer-unfriendly and hurtful.
With fines ranging from Rs 50 to Rs 100 (plus service tax) being levied for non-maintenance of the required balance, the new norm has left many in dilemma. While some contemplate finding means to keep their SB accounts operational, there are others who have decided to close their accounts. Outstation students, who depend on scholarships or money sent by family, say the fines may appear to be meagre for those in relatively comfortable financial position, but not for them.
T Sukumaar, 25, a student in the University of Madras, is working part-time and earns a monthly income of Rs 12,000, nearly all of which goes to support his family. He says, it is unfeasible to maintain a balance of Rs 5000. He has written a letter to my bank last week for account closure. “I am approaching the postal bank, where there are similar facilities including a debit card,” Sukumaar said.
Another student P Ashraf, who is pursuing his M.Phil in Economics, said the SBI decision harms the students the most as they survive on scholarships or small amounts sent by family. “A big part of that deposited money goes for paying educational expenses, leaving only around Rs 2500 for our personal expenses,” he said. Ashraf has already approached a private sector bank to open a zero balance account.