RBI should step in Avoid note ban mistakes
SBI has prescribed the monthly average balance (MAB) requirement of ~5,000 for branches in six metros, ~3,000 for urban, ~2,000 for semi-urban and ~1,000 for rural branches in savings bank (SB) accounts (excluding Jan-Dhan Yojana, Surabhi accounts) from April 1.
Not maintaining MAB will invite penalty ranging from ~20 (rural branches) to ~100 in (metro cities). These changes and penalty will apply to SB account holders of recently merged associate banks of SBI. Other public sector banks are likely to follow suit.
SBI Chairperson Arundhati Bhattacharya said the hike in MAB was necessitated to offset the cost of maintaining Jan-Dhan accounts. A few private sector banks such as ICICI, IndusInd have prescribed MAB of ~2,500 to ~10,000 or more for SB accounts depending on the location of the branches. Hence, many customers preferred to hold accounts in public sector banks, cooperative banks etc. A large number of customers, who generally have balance of about ~1,000 at the end of every month will suffer.
It is sad that over the last two decades the Reserve Bank of India (RBI) has been concerned more with deregulation than control over banks. The RBI should not allow banks, including SBI, to decide unilaterally and against the interest of customers. The central regulator should exercise its authority and direct SBI to reverse its decision.
Ramanath Nakhate Mumbai doing to ensure there is not an encore year after year?
We get four months of rainfall, which is utilised the for eight months ahead till the next instalment arrives around June next year. What is worrying is adequate arrangements are not being made for optimum utilisation of the deluge between June and September. Most of the water flows into the sea.
We need to have water harvesting plans to store the liquid and avert crisis in the lean months. Periodically, there is reportage about stray cases or villages that have successfully harvested water and are not facing a calamitous situation. Such success stories need to be replicated throughout the country. In urban centres where high-rise buildings are many, every one of them should adopt water harvesting techniques to ensure they do not drain water from the common pool.
As for funding of water harvesting infrastructure, companies could be tapped to utilise their corporate social responsibility (CSR) funds. Companies could tie up with willing NGOs in this regard. It is up to individuals and the community to do their bit to alleviate the suffering caused by water shortage rather than expecting the government to always come to their aid. Doomsday are already predicting wars would be fought over water. To stave off such a situation, collective all-round effort is required.
K V Premraj Mumbai With reference to the report, “Another new note, this time for ~200, from RBI on its way?” (April 5), the Central Board of the Reserve Bank of India has cleared the associated proposal.
One reason for the issuance of these notes could be to meet the overall shortage of lower denomination banknotes. As there is no official confirmation from the RBI about the move, people would have to wait for the government to clear the air. If the news turns out to be true, I hope the mistakes of the November 2016 demonetisation are not repeated.
S K Gupta New Delhi