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SBI says no formal communication from govt to reconsider penalty on minimum balance

The country's largest state-run lender State Bank of India (SBI) has said it hasn't received any formal communication from the government asking them to reconsider the charges. 

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The country's largest state-run lender State Bank of India (SBI) has said it hasn't received any formal communication from the government asking them to reconsider the charges. 

However according to ANI and PTI, on Tuesday, the government had urged banks to reconsider charging a penalty for non-maintenance of minimum balance, for cash transactions, and for ATM transactions. ANI and PTI, on Tuesday, the government had urged banks to reconsider charging a penalty for non-maintenance of minimum balance, for cash transactions, and for ATM transactions. 

Rajnish Kumar, Managing Director, National Banking of State Bank of India was quoted by MoneyControl.com as saying, "There is no formal communication from the government yet but we hear that it is being discussed."

SBI was planning to penalise its customers for non-maintenance of minimum balance from April 1. It recently hiked its minimum balance to Rs 5000 for six metros, and Rs 3000 and Rs 2000 for urban and semi-urban areas. The move would hit 31 crore SBI account holders. Under the latest notification from the bank, it would charge a penalty of Rs 20, 50 and Rs 100 depending on the type of account. For current accounts, it could go up to Rs 500. 

On Tuesday, Andhra Pradesh Chief Minister Chandrababu Naidu who also heads a high-level committee of chief ministers and others on digital economy, warned that if banks start imposing charges on withdrawals and deposits and ATM withdrawals and on minimum balance, people will just keep their money at home. This would be detrimental the government's focus on increasing access to banking to the unbanked, encouraging people to take up digital banking and transactions, and demonetization. 

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