Lok Sabha Question No. 3796 (UNSTARRED), answered on 2017-03-24
Subject: Restrictions on Deposits/Withdrawals
Ministry: FINANCE
Asked by: TARIQ ANWAR, KAUSHALENDRA KUMAR, R.P. MARUTHARAJAA, C. MAHENDRAN, K. C. VENUGOPAL, ADVOCATE NARENDRA KESHAV SAWAIKAR, DUSHYANT CHAUTALA, RAVINDRA KUMAR RAY, N.K. PREMACHANDRAN, P.K.SREEMATHI TEACHER, RAMACHANDRAN MULLAPPALLY, George Baker, SHER SINGH GHUBAYA, JOSE K. MANI, Richard Hay, (ADV.) JOICE GEORGE, BALKA SUMAN, VEENA DEVI, CHINTAMAN NAVSHA WANAGA, CHINTAMANI MALVIYA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 3796

TO BE ANSWERED ON 24TH MARCH, 2017 (FRIDAYY CHAITRA 3, 1939 (SAKA)

## Restrictions on DepositsMithdrawals

3796 . SHRI TARIQ ANWAR:

SHRI KAUSHALENDRA KUMAR:

SHRI RPMARUTHARAJAA:

SHRI C. MAHENDRAN:

SHRI KC. VENUGOPAL:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI DUSHYANT CHAUTALA:

DR. RAVINDRA KUMAR RAY:

SHRI N.K PREMACHANDRAN:

SHRIMATI PK. SREEMATHI TEACHER:

SHRI MULLAPPALLY RAMACHANDRAN: SHRI GEORGE BAKER:

SHRI SHER SINGH GHUBAYA:

SHRI JOSE K MANI:

PROF. RICHARD HAY:

ADV. JOICE GEORGE:

SHRI SUMAN BALKA:

SHRIMATI VEENA DEVI:

ADV. CHINTAMAN NAVASHA WANAGA:

PROF. CHINTAMANI MALVIYA:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Public Sector Banks(PSBs) have decided to impose penalty for not the details thereof and the reasons therefor and the corrective steps taken by the Government in this regard;
- (b) whether the Government has issued order for banks to permit savings bank account holders to depositlwithdrawal cash three times a month free of charge and levy Rs.50 plus service tax on every transaction beyond that and if so, the details thereof and the reasons therefor;
- (c) whether the penalty charges are different in metropolitan areas, urban and rural branches and if SO, the details thereof;
- (d) whether withdrawal of cash from ATMs attract a charge of up to Rs.20 if the number of transactions exceeds three from other banks ATMs, in a month and Rs.10 more than five withdrawals from SBI ATMs, if so, the details thereof and the reasons therefor;
- (e) whether the Government consider relaxation from such penalties in the cases of depositlwithdrawal of money for the reasons such as marriagesl hospitalisation etc ; and
- (f) if so, the details thereof and if not, the reasons therefor?

## Answer

## The Minister of State in the Ministry of Finance (SHRI SANTOSH KUMAR GANGWAR)

- (a) and (c): Details of of charges by public sector banks for metropolitan areas, urban, semi-urban and rural branches are at Annex RBI's circular dated 20.11.2014, provides, inter alia, that Boards of banks are to decide the policy on levy of levy panel

charges on non-maintenance of minimum balances on savings bank account; and that such charges should be in line with the average cost of providing the services. Public sector banks have apprised that the charges are to cover cost of services.

- (b) madam: No,
- (d) to (f): As per RBI's circular dated 14.8.2014, banks may in place appropriate Board-approved policy relating to the charges for customers for use of their ATMs. It further provides that if the number of financial and non-financial transactions in a month from other banks' ATMs exceeds three transactions at ATMs located in the six metro cities (viz. Mumbai, New Delhi; Chennai; Kolkata, Bengaluru and Hyderabad) or five transactions at ATMs at all other locations, the charges are capped at Rs. 20 per transaction (plus service tax): For exceeding five in a month at SBI's own ATMs, the State Bank of India (SBI) charges Rs. 5 (plus service tax) per transaction. put

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Annex ** Minimum balance charges in individual savings bank accounts (other than BSBD account)

| No.   |                                               | With cheque book          | With cheque book          | With cheque book          | With cheque book   | With cheque book   | With cheque book   | With cheque book   | With cheque book   | Without cheque book       | Without cheque book       | Without cheque book       | Without cheque book       | Without cheque book   | Without cheque book   | Without cheque book   | Without cheque book   |
|-------|-----------------------------------------------|---------------------------|---------------------------|---------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|---------------------------|---------------------------|---------------------------|---------------------------|-----------------------|-----------------------|-----------------------|-----------------------|
|       |                                               | Quarterly average balance | Quarterly average balance | Quarterly average balance | Charges            | Charges            | Charges            | Charges            | Charges            | Quarterly average balance | Quarterly average balance | Quarterly average balance | Quarterly average balance | Charges               | Charges               | Charges               | Charges               |
|       | Bank                                          | 1                         |                           |                           |                    | 1                  |                    |                    |                    |                           | I                         |                           | 2                         | 1                     | I                     |                       |                       |
|       | Allahabad Bank                                | 500                       | 500                       | 1000                      | 1000               | 102                | 102                | 143                | 143                | 100                       | 100                       | 500                       | 500                       | 36                    | 36                    | 77                    | 77                    |
| 2     | Andhra Bank*                                  | 250                       | 250                       | 500                       | 500                | 50                 | 100                | 100                | 100                | 100                       | 250                       | 250                       | 250                       | 50                    | 100                   | 100                   | 100                   |
| 3     | Bank of Baroda"                               | 500                       | 500                       | 1000                      | 1000               | 100                | 100                | 200                | 200                | 500                       | 500                       | 1000                      | 1000                      | 100                   | 100                   | 200                   | 200                   |
|       | Bank of India                                 | 500                       | 500                       | 500                       | 500                | 54                 | 54                 | 54                 | 54                 | 100                       | 100                       | 100                       | 100                       | 40                    | 40                    | 40                    | 40                    |
| 5     | Bank of Maharashtra                           | 250                       | 500                       | 500                       | 500                | 40                 | 80                 | 120                | 120                | 250                       | 500                       | 500                       | 500                       | 40                    | 80                    | 120                   | 120                   |
|       | Bhartiya Mahila Bank                          | 0                         |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
|       | Canara Bank*                                  | 500                       | 1000                      | 1000                      | 1000               | 40                 | 40                 | 40                 | 40                 | 500                       | 1000                      | 1000                      | 1000                      | 40                    | 40                    | 40                    | 40                    |
| 8     | Central Bank of India                         | 250                       | 500                       | 1000                      | 1000               | 60                 | 120                | 180                | 240                | 250                       | 500                       | 1000                      | 1000                      | 60                    | 120                   | 180                   | 240                   |
| 9     | Corporation Bank                              | 250                       | 500                       | 500                       | 500                | 100                | 100                | 100                | 100                | 250                       | 500                       | 500                       | 500                       | 100                   | 100                   | 100                   | 100                   |
| 10    | Dena Bank                                     | 500                       | 500                       | 1000                      | 1000               | 50                 | 50                 | 100                | 100                | 500                       | 500                       | 1000                      | 1000                      | 50                    | 50                    | 100                   | 100                   |
| 11    | IDBI Bank Limited                             | 500                       | 2500                      | 5000                      | 5000               | 20                 | 100                | 200                | 200                | 500                       | 2500                      | 5000                      | 5000                      | 20                    | 100                   | 200                   | 200                   |
| 12    | Indian Bank                                   | 500                       | 500                       | 500                       | 500                | 100                | 100                | 100                | 100                | 250                       | 250                       | 250                       | 250                       | 100                   | 100                   | 100                   | 100                   |
| 13    | Indian Overseas Bank                          | 500                       | 500                       | 1000                      | 1000               | 45                 | 45                 | 45                 | 45                 | 100                       | 100                       | 500                       | 500                       | 45                    | 45                    | 45                    | 45                    |
| 14    | Oriental Bank of Commerce                     |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       | 0                     |
| 15    | Punjab & Sind Bank                            |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
| 16    | Punjab National Bank*                         | 500                       | 1000                      | 1000                      | 1000               | 75                 | 100                | 150                | 200                | 500                       | 1000                      | 1000                      | 1000                      | 75                    | 100                   | 150                   | 200                   |
| 17    | State Bank of Bikaner & Jaipur_               |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
| 18    | State Bank of Hyderabad                       |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
| 19    | State Bank of India* (proposed from 1.4.2017) | 1000                      | 2000                      | 3000                      | 5000               | 50                 | 75                 | 80                 | 100                | 1000                      | 2000                      | 3000                      | 5000                      | 50                    | 75                    | 80                    | 100                   |
| 20    | State Bank of Mysore                          |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
| 21    | State Bank of Patiala                         |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
| 22    | State Bank of Travancore                      |                           |                           |                           |                    |                    |                    |                    |                    |                           |                           |                           |                           |                       |                       |                       |                       |
| 23    | Syndicate Bank                                | 500                       | 500                       | 1000                      | 1000               | 40                 | 40                 | 40                 | 40                 | 100                       | 100                       | 500                       | 500                       | 40                    | 40                    | 40                    | 40                    |
|       |                                               | 0                         | 0                         | 0                         | 0                  |                    |                    |                    |                    |                           |                           |                           |                           | 0                     | 0                     | 0                     | 0                     |
| 24    | UCO Bank                                      |                           |                           |                           |                    | 0                  | 0                  | 0                  | 0                  |                           |                           |                           |                           |                       |                       |                       | 43                    |
| 25    | Union Bank of India                           | 250                       | 500                       | 1000                      | 1000               | 29                 | 58                 | 115                | 115                | 100                       | 250                       | 500                       | 500                       | 22                    | 22                    | 43                    |                       |

|   26 | United Bank of India   |   500 |   500 |   500 |   500 |   72 |   72 |   72 |   72 |   50 |   100 |   100 |   100 |   44 |   72 |   72 |   72 |
|------|------------------------|-------|-------|-------|-------|------|------|------|------|------|-------|-------|-------|------|------|------|------|
|   27 | Vijaya Bank            |   250 |   250 |   500 |   500 |   50 |   65 |   65 |   65 |  250 |   250 |   500 |   500 |   50 |   65 |   65 |   65 |

Source: Public Sector Banks

Penalty for non maintenance of average minimum balance is proportionate to the shortfall of the actual balance from the minimum balance: In the above calculation table the maximum penalty is shown:

** As per Reserve Bank of India (RBI) circular dated 10.8.2012,no penal charges are to be levied

for non-operation/non-activation of Basic Savings Bank Deposit (BSBD) accounts.

Vide RBI's circular dated 6.5.2014 of penal charges for non-maintenance of minimum balances in any inoperative account is not permitted. levy