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SBI hikes service charges, quietly

DO YOU read the notice board of any bank branch in the city when you visit one in your locality? Do you also visit a bank?s official website regularly to find out what?s changing in the bank?

india Updated: Feb 08, 2006 01:30 IST

DO YOU read the notice board of any bank branch in the city when you visit one in your locality? Do you also visit a bank’s official website regularly to find out what’s changing in the bank?

The State Bank of India (SBI) On February 1 this year revised all the charges on its services offered to the customers by simply putting circulars of new service charges on the SBI website and on the notice board at its various branches. A large number of customers are surprised that no wide publicity was made of a matter.

When contacted, P Bhashyam, chief general manager (CGM), SBI, said it was a general corporate policy of the bank to put the revised rates on the website and important circulars were put on the notice board of the bank branches in a circle. “I admit that the revised rates have been put only on notice broad of our branches and the SBI website”, he said.

Meanwhile, as per the revised charges announced by the bank, the customers would have to cough up more, especially current account holders in the form of service charges even for depositing money now.

The service charge would be applicable on all deposits of over Rs 10,000. To add to this, all the ATM card holders of the bank would have to now pay Rs 50 per annum as maintenance charge.

Besides, levying service charges which was nil till February 1, 2006, the bank has also decided to charge more for safe desposit also.

As per the circular, cash handling charges for deposits into current account and cash credit have been fixed at Rs 10 from Rs 10,000 to Rs 50,000. Similarly, Rs 25 would be charged for deposit from Rs 50,000 to Rs 1 lakh while Rs 50 per lakh would be charged for deposit from Rs 1 lakh up to Rs 50 lakh.

However, in this category service charges would be levied only up to the maximum limit of Rs 5000.

The circular stating about revision of charges for safe deposits states that instead of Rs 25 plus for safe deposits being charged till date, Rs 500 plus one time would be charged from those taking the benefits. Similarly, envelope keeping charges have been raised from Rs 20 per annum to Rs 100 per annum.

For package instead of Rs 25 per annum, the charges have been raised to Rs 500 per annum and for large packet instead of Rs 140 per annum, the customers would have to pay Rs 1000 per annum.

Similarly, for account closing before 12 months instead of charging Rs 110, the bank would charge just double Rs 220 from individuals while Rs 500 would be charged from companies.

However, minimum balance charges have been revised from the existing Rs 55 per month to Rs 150 per quarter. According to the circular letter number CirCo /Adv/411/2005-06 issued on January 12, “It has now been decided by Corporation Centre to revise the service charges with effect from February 1, 2006 in some areas, keeping the competition in view, covering collection, remittances and certain other areas relating to all segments.”

Regional manager of the SBI at Kanpur PK Srivastava admitted that such a circular had come and the same had been sent to all the branch managers of the bank. The revised and new charges have come into effect from February 1.

First Published: Feb 08, 2006 01:30 IST