State Bank of India (SBI) chairman Arundhati Bhattacharya, on Wednesday, justified the bank's decision to penalise non-maintenance of minimum balance saying it would help them realise the cost borne to open and maintain Jan Dhan bank accounts. 

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The largest state-run lender in the country recently decided to levy a fee in the range of Rs 20 - 500 on its savings and current account customers if they fail to maintain a newly prescribed minimum balance.

While the government asked the bank to reconsider its decision that would impact nearly 31 crore people who bank with the SBI, Bhattacharya said," We have more than 10 crore small or Jan Dhan account. To manage this huge number, there is a cost. This cost we are not able to realize," according to ANI. 

This means, the cost realised by penalising customers for not maintaining minimum balance in their accounts would be used to meet that deficit. According to a 2015 report carried by Business Standard five months after Prime Minister Narendra Modi announced the Pradhan Mantri Jan-Dhan Yojana (PMJDY) on August 15, 2014, the banks had spend Rs 2,000 crore to open accounts under the scheme. The report quoted Indian Banks Association chairman and the chairman and managing director of Indian Bank, T M Bhasin saying that opening one account under the scheme cost the banks around Rs 140 against the estimated Rs 80 per account. 

SBI recently hiked the minimum balance that its customers in the six metro cities would have to maintain to 5,000, and those in urban and semi-urban areas to Rs 3,000 and Rs 2,000.