State Bank of India has collaborated with SBI-cards for issue of SBI-cards to all account-holders of SBI having minimum balance of rupees 20000-25000, without going into credit-history of account-holder. On the other hand, SBI has from 01.04.2017 has decided to levy minimum-balance charge requiring minimum balance of rupees 5000 in savings-accounts in metro-cities.
Liberal issue of credit-cards will be misused by fraud-minded persons. Already account-holders have facility of debit-cards to all account-holders. Rather SBI should take lead in abolishing transaction-charges on use of credit and debit cards. Processing charges on issue of credit and debit cards should also be abolished. Presently sellers charge transaction-charge of 2-percenbt from customers on purchases made through credit and debit cards, especially where profit-margin is very low in a competitive market.
SBI can more than compensate for loss due to complete waiver of minimum-balance charge, by reducing interest-rate on savings accounts to be credited annually rather than half-yearly as at present on minimum balance in a month. No monthly interest may be paid for first rupees 5000 in savings-account.
SBI being the largest public-sector bank with 31 crores savings-account-holders has a national duty under corporate-social-
SUBHASH CHANDRA AGRAWAL