HYDERABAD: Social media presently is abuzz with calls for a ‘No Transaction Day’ on April 6 following the State bank of India (SBI) and its 5 associate banks’ decision altering minimum account balance (MAB) norms and decreasing interest rates on savings deposits. The rules came into effect on April 1.
With the new rules, SBI bank account holders will have to maintain a minimum balance ranging from `500 to `1,000 with the bank. Charges will be applied for cash withdrawal at ATMs and even for deposits with the bank, beyond a certain limit.
Banks, including SBI, have also cut back on interest rates on small savings schemes, PPF, National Savings Certificate (NSC) and Kisan Vikas Patras by 0.1 pc.
“I use the ATM more than five times a month, but my frequency of use has reduced due to cash shortage in Hyderabad. But it is unfair for them to impose these charges for both withdrawal and deposits,” says Ann M John, an SBI account holder.
However, bank officials are skeptical about the impact such a move would cause. “This is an unorganised protest and will fizzle out,” said S Venkateshwar Reddy , general secretary, Rural Bank Employees Association.