SBI start eating customers money

The largest bank in government sector, State Bank of India start eating customers money in the form of commission upon depositing cash to a savings account from any non-home branch using core banking facility. Earlier, cash deposits up to Rs 50,000 at a non-home branch were free and millions availed of it as a means of sending money home. This action may be to increase bank’s income but, giving more burden as well as pain to a customer. It is a clear sign of greed and increase bank’s income by giving enormous pain to the huge, ordinary customer base

From September 1, any customer approaching to a non-home branch of SBI to deposit money to savings bank account, required to pay a commission of Rs. 2 per thousand or a minimum of Rs. 25 per transaction. This means, if you are depositing 500,000, you have to pay Rs. 1,000 as banks commission. This action not only gives more burden to customers, who are willing to deposit money from non-home branch using SBI’s highly praised core banking facility. As a big government sector bank in India, this action is extremely pathetic and a bad practice for other banks to follow the same path.

This action can’t be justifiable. For an example, if you are depositing Rs. 1000 to an account from a non-home branch to your account using core banking facility, they are charging a commission of Rs. 25. In an interest rate of 3.5% with the savings bank accounts, it will take enormous time to get this money back as interest on this Rs.1000. This is a huge lose for customers. Now customer required to be alert on the implementation of commission when they are depositing to there savings bank in the home branch itself.

What is the best action? The advantage of SBI is its networked ATM’s all over India to give you access to your money from any point. But, nowadays, most of the banks planning or started tie ups with other banks to provide free ATM facilities to there customers. It is the time to really think whether you want to keep the account and fixed deposits with SBI or identifying a bank who providing best facilities, to start banking with them. It is sure that more banks will follow the SBI path in near future to generate more income by eating customer’s money through implementing miscellaneous commission or other new charges.

This is the latest example for the banking pain in India.