SBI will no longer penalise account holders for non-compliance with AMB norms
The State Bank of India also declared that interest rate on savings account will now be a flat 3%
SBI is the oldest commercial bank in the Indian subcontinent
The State Bank of India (SBI) on Wednesday issued a statement saying that it is doing away with minimum balance requirements in savings accounts. The nationalized bank also rationalized the interest rate on savings bank accounts to a flat 3 per cent per annum.
Until now, customers with savings accounts in SBI in metro and urban areas were required to maintain a minimum account balance of Rs 3,000 as compared to 2,000 in semi-urban branches and Rs 1,000 in rural areas. The bank also charged penalties ranging from Rs 10 to Rs 15 plus GST from customers in metro and urban areas who failed to maintain a minimum account balance.
In comparison, customers in semi-urban branches were penalised with a fine of Rs 7.5 to Rs 12 plus GST for the same and customers in rural areas charged Rs 5-10 plus GST for non-compliance with the average monthly balance (AMB) factor.
With respect to interest rate on savings accounts, SBI has slashed the same from 3.5 per cent on accounts with balances upto Rs 1 lakh, to a flat 3 per cent. For savings accounts with balance above Rs 1 lakh, the interest rates remain standard 3 per cent at 2.75 per cent below RBI's repo rate for balance above Rs 1 lakh.
Earlier this month, the SBI took up a lead role in RBI’s revival plan for Yes Bank which landed in trouble owing to its distressing loan book. SBI chairman Rajnish Kumar has been appointed the administrator for this move. Kumar told India Today that SBI will acquire 49 per cent stake in Yes Bank as part of strategic investment.
SBI के दो बड़े फैसले, जीरो बैलेंस की सुविधा दी और बचत खातों पर घटाई ब्याज दर
न्यूज डेस्क, अमर उजाला, नई दिल्ली Updated Thu, 12 Mar 2020 03:48 AM IST
भारतीय स्टेट बैंक ने अपने 44.51 करोड़ बचत खाताधारकों को गुरुवार को दो बड़े फैसले लिए हैं। पहले फैसले में एसबीआई ने बचत खाते पर जीरो बैलेंस की सुविधा दी है, जबकि दूसरे फैसले में बचत खातों पर मिलने वाली ब्याज दर घटा दी है।
एसबीआई ने बुधवार को जो फैसला लिया है इसके तहत बचत खातों में न्यूनतम बैलेंस बनाए रखने की अनिवार्यता को समाप्त कर दिया है। ऐसे में अब ग्राहकों के खाते में रकम नहीं होने पर कोई शुल्क नहीं लगेगा। जबकि दूसरे फैसले के तहत बैंक ने बचत खातों पर अब तक मिल रही 3.25 फीसदी की ब्याज दर को घटाकर फ्लैट 3 फीसदी कर दिया है।
पहला फैसला ऐसे समझें: जीरो बैलेंस की अनिवार्यता खत्म
भारतीय स्टेट बैंक ने बचत खाते में औसत मासिक न्यूनतम राशि रखने की अनिवार्यता बुधवार को समाप्त करने का फैसला किया। इससे अब बैंक के सभी बचत खाताधारकों को जीरो बैलेंस की सुविधा मिलने लगेगी। एसबीआई ने एक बयान जारी कर कहा कि देश में वित्तीय समावेशन को आगे बढ़ाने के लिए उसने औसत मासिक न्यूनतम राशि (एएमबी) रखने की अनिवार्यता खत्म की है।
बता दें कि अभी मेट्रो शहरों में बचत खाताधारकों को न्यूनतम राशि के रूप में 3000 रुपये, कस्बों में 2000 रुपये और ग्रामीण इलाकों में 1000 रुपये खाते में रखने होते हैं। अभी तक न्यूनतम राशि की शर्त पूरी नहीं करने पर ग्राहकों को पांच से 15 रुपये तक जुर्माना और करों का भुगतान करना पड़ता था। इस संबंध में बैंक के चेयरमैन रजनीश कुमार ने कहा कि यह फैसला और अधिक लोगों के चेहरे पर मुस्कान लाने वाला होगा। दूसरा फैसला ऐसे समझें: बचत खाते पर ब्याज दर घटाई
एसबीआई ने दूसरे अपने फैसले में बचत खातों पर ब्याज दर घटाई है। अभी तक बचत खाताधारकों को खाते में जमा राशि के अनुसार 3.25 फीसदी की दर से वार्षिक ब्याज मिलता था। परंतु नए फैसले के बाद इस दर को घटाकर फ्लैट यानि एक समान रूप से 3 फीसदी कर दिया गया है। इसके साथ ही मियादी जमाओं (फिक्स डिपॉजिट या एफडी) और कोष की सीमांत लागत आधारित ब्याज दरों (एमसीएलआर) में कटौती की भी घोषणा की है।
बैंक ने एक और फैसला लिया
एसबीआई ने उपरोक्त दोनों फैसलों के अलावा एक और निर्णय लिया है। इसके तहत अब उसके ग्राहकों को एसएमएस सेवा के लिए त्रैमासिक आधार पर लगने वाला शुल्क नहीं चुकाना होगा। इसे भी खत्म कर दिया गया है।
Yes Bank resumes operations; branches will open one hour earlier from 19-21 March 1 min read. Updated: 18 Mar 2020, 06:46 PM ISTPTI
The bank also extended banking hours across branches for its senior citizen customers, from 19-27 March, 2020, 16:30 hours to 17:30 hours
Yes Bank branches will open at 08:30 hours from 19-21 March, 2020
Topics Yes Bank Mumbai: Yes Bank on Wednesday said it has resumed operations, and all its banking services are available for its customers now.
"Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation. #YESforYOU @RBI @FinMinIndia," the lender tweeted.
The Reserve Bank of India (RBI) had put restriction on the lender on March 5, under which the bank's customers were allowed to withdraw up to ₹50,000 till April 3.
The government notified the Yes Bank reconstruction scheme last week.
Yes Bank branches will open one hour earlier at 08:30 hours from 19 to 21 March, 2020.
The bank also also extended banking hours across branches for its senior citizen customers, from 19-27 March, 2020, 16:30 hours to 17:30 hours.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
Customers who receive EMI payment notice at the beginning of every month can heave a sigh of relief as banks have decided to defer receiving such payments for a period of three month under the terms of a Covid 19- RBI package
announced on Friday.
Several banks, including State Bank of India, sent tweets on Tuesday informing the customers that they have deferred payment of
EMIs of housing loan , vehicle loans , MSME loans
and payment of all other term loans whose installentins are due after March 1 and up to May 31 by three months.
The system of deferment will function automatically as most banks would not raise demand for EMIs for next three months. The repayment period post the moratorium will also get extended accordingly.
The scheme would be available to all borrowers having standard account with the bank, meaning no record of default.
However, customers who do not want to defer their EMIs and want to continue paying their loan instalment will have to inform banks that they don’t need to utilise the moratorium on payments.
Banks have also issued mailers and put FAQs on their sites informing the customers about the scheme.
It is expected that several customers may opt out of the EMI deferment as during the said moratorium period, interest shall continue to accrue on the outstanding portion of the term loan. The interest accrued will be added to the outstanding loan amount and the repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period.
“Bank of Baroda is providing a moratorium of 3 months on payment of all instalments falling due between 01.03.20 & 31.05.20 for all term loans...,” the PSU bank said in a tweet.
Analysts said simple interest rate would be calculated by banks for the three-month period in which loan repayment was due but was not paid under the moratorium. This would be added up into your EMIs at the end of three-month forbearance.
So, if you’re deferring payment of an EMI of, say Rs 1,000, and the bank is charging interest at the rate 10 per cent on outstanding, you will end up paying Rs 25 extra on each of the three EMIs that has not been paid during the moratorium. This additional interest may either be added up to all your future EMIs or your loan tenure could get extended at the same EMI level.
While the clarity has not been offered by banks, the EMI deferment would actually benefit customers to defer two instalments falling due in the months of April and May as from June regular EMI payment will start with the instalment getting higher (including principal and interest two months instalment) or if EMI is maintained at original level, the tenure of repayment gets extended as additional interest gets adjusted in all future EMIs.
EMI relief: No action from private banks create confusion
Apr 1, 2020 9:32 AM
Daijiworld Media Network – New Delhi
New Delhi, Apr 1: Even though the RBI Governor announced that banks are allowed to offer three-month moratorium on EMIs and term loans, only a few public sector banks have implemented the RBI guidelines. Major private banks are yet to come out with their decision. April 1, being the first day of the month and for many bank customers, possibly the deadline to pay their loan or EMIs, are in a confused state. Many received text messages alerting them that their loan EMIs would be debited from their account, and they needed to maintain adequate balance.
So far State Bank of India, Punjab National Bank, Bank of Baroda, Union Bank of India, IDBI Bank, Canara Bank, Syndicate Bank, Indian Overseas Bank, Indian Bank, UCO Bank, and Central Bank of India, have officially communicated to their customers or the announcement has been published on their bank website and social media account.
[https://res]Click to open high quality image >>
However, private banks like Axis Bank, HDFC, and ICICI etc have still not come out with any announcements.
Axis Bank on Tuesday, March 31 tweeted, "We are actively working towards implementing the requirements of the RBI guidelines on COVID-19 Regulatory package for offering moratorium on payment of instalments and/or deferment of interest. The customers would be informed shortly about the details and the manner of availing the option(s)."
Other private banks failure to communicate with customers and give a clear indication about the guidelines, have created confusion among customers.
Daijiworld Media Network – New Delhi New Delhi, Apr 1: Even though the RBI Governor announced that banks are allowed to offer three-month moratorium on EMIs and term loans, only a few public sector banks have implemented the RBI guidelines. Major private banks are yet to come out with their...
10 public sector banks to merge into 4 today; all you need to know
Apr 1, 2020 9:54 AM
Bank merger: The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches
[https://res]Click to open high quality image >>
As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank
The merger of ten government-run banks into four will come into force from April 1. The branches of the merging banks will operate as branches of the banks in which they have been merged. Customers of merging banks will also now be treated as customers of the banks in which these banks have been merged. The banks' merger was announced last year in August and the union cabinet gave the final approval on March 4. In the past, various other bank mergers have taken place. For instance, in 2017, the country's largest public lender - the State Bank of India took over five of its associates and Bharatiya Mahila Bank. Last year, Vijaya Bank and Dena Bank were merged with Bank of Baroda. Kotak Mahindra Bank and ING Vysya Bank merger and amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank took place in 2014 and 2008, respectively.
Here are a few aspects of the PSU bank merger:
1. As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank. The new entity will have a business of Rs 17.95 lakh crore and 11,437 branches.
2. The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches.
3. Allahabad Bank branches will operate as those of the Indian Bank. The merger of Allahabad Bank with the Indian Bank will create the seventh-largest public sector bank with Rs 8.08 lakh crore business.
4. Branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India. Andhra Bank and Corporation Bank's merger with Union Bank of India will create India's fifth-largest public sector bank with Rs 14.59 lakh crore business and 9,609 branches.
5. The government had front-loaded Rs 68,855 crore to take care of the bank-merger plan.
6. Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Allahabad Bank was provided Rs 2,153 crore, United Bank of India Rs 1,666 crore, Andhra Bank Rs 200 crore, Indian Overseas Bank Rs 4,360 crore and UCO Bank Rs 2,142 crore
7. According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year.
8. With this mega-bank mergers, the number of PSBs will get consolidated from 27 banks in 2017 to 12 banks in 2020.
9. The new 12 public sector banks will be -- six merged banks and six independent banks. State Bank of India, Bank of Baroda Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.
According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year
Coronavirus lockdown: All bank branches to be open from Monday Coronavirus update: The Department Of Financial Services (DFS) asked banks to ensure that all branches and channels are functional throughout the 21-day coronavirus lockdown BusinessToday.In New Delhi Last Updated: April 2, 2020 | 09:34 IST
Coronavirus news: All bank branches will be open from Monday
All bank branches across the country will be operational from Monday. The government issued an advisory to banks to keep their branches open to ease the pressure of salary and pension payment. Banks will remain open from 10am to 2pm.
The Department Of Financial Services (DFS) asked banks to ensure that all branches and channels are functional throughout the 21-day coronavirus lockdown so that all financial transactions can take place without disruption, as mentioned in a report in The Economic Times. The DFS advisory was also aimed at the rural customers who would be benefited from the government's Rs 1.7 lakh crore financial package.
The Reserve Bank of India (RBI) had also announced special measures for annual closing of government accounts for FY20. The apex bank also advised banks to keep the over-the-counter windows open up to normal hours for government transactions on March 31, as mentioned in the daily.
The government had stated that cash deposit and withdrawal, clearing of cheques, government transactions, ATMs, remittance services were all essential services and would be exempted from the lockdown restrictions. It also said that all banks would operate with skeletal staff and provide the basic services. This advisory is likely to remain unchanged.
Banks were following cluster-wise banking so far during the lockdown, under which a single branch of a bank functioned under a 5km radius in urban and semi-urban areas. In rural areas, branches were open on alternate days. Meanwhile, coronavirus cases continue to rise in India, with the total active cases reaching up to 1,649. So far, 41 deaths have been reported in India. Wednesday saw the biggest spike in cases so far with 300 coronavirus cases.
The interest amount has to be paid lump-sum in June, the advisors also said
Even as the RBI recently allowed banks to provide a three-month moratorium on loans, only the borrowers with genuine liquidity problems should opt for the facility, according to investment experts. The provision may allow for deferment of EMI payment due in March, April, and May, but interest will continue to accrue for this period.
The interest amount has to be paid lump-sum in June, the advisors also said. "Only the borrowers with genuine cash flow problems arising out of either salary delay or salary cut should opt for this relief measure. However, the ones with enough corpus to tide over the coming 3-4 months are advised to better pay up. Why to end up paying additional interest along with the regular EMIs after three months," tax and investment advisor Jitendra Solanki, JS Financial Advisors, told BusinessToday.In.
The repayment schedule for such loans, as also the residual tenor, was allowed by the RBI to be shifted across the board by three months after the moratorium period (March 1, 2020, and May 31, 2020). However, the interest would continue to accrue on the outstanding portion of the term loans during the moratorium period, RBI also said in a recent statement.
"The people whose cash flows have been impacted due to the COVID-19 outbreak can avail of the option. But, if you have enough provisions with you, don't go for it. Or, one can pay for one month and review the situation thereafter. Those who are unsure about the job or cash flow prospects in the coming two months can avail of this scheme," independent financial advisor Harsh Roongta told BusinessToday.In. The credit card, EMI, retail loan installments should be paid if the borrowers are not financially strained since interest will be calculated on a higher amount every month, the experts added.
Meanwhile, SBI explained the possible impact of the extension of the repayment period in a note on its official website saying:
Impact on auto loan:
For a loan of Rs 6 lakh with a remaining maturity of 54 months, the additional interest payable would be Rs 19,000 nearly equal to an additional 1.5 EMIs.
Impact on home loan:
For a loan of Rs 30 lakh with a remaining maturity of 15 years, the net additional interest would be nearly Rs 2.34 lakh equal to 8 EMIs.
Availing moratorium may mean huge EMI burden later
3-month suspension of EMI payments may not result in significant gains for borrowers as banks will charge interest for moratorium period, according to moratorium scheme announced by state-owned bank
RBI Headquarters in Mumbai (Photo Courtesy: PTI)
After RBI’s announcement of the three-month moratorium for EMIs, bankers are advising borrowers not to avail it.
If you have taken any loan from a bank and thinking of availing the three-month moratorium as offered by your bank on the instruction of RBI in view of ongoing lockdown due to COVID-19, then please have a rethink.
The RBI notification had said "the repayment schedule for such loans as also the residual tenure, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period".
Deferred instalments under the moratorium will include principal and/or interest components, bullet repayments, EMIs, credit card dues, the RBI had said.
The good news is that all types of term loan borrowers can avail of this facility. The term loans include home loans, automobile loans, farm loans, retail loans and crop loans.
And yes, RBI has clarified that the installments will include credit card dues too.
Even state-run Bank of Baroda has said it is offering retail customers the option of getting a refund of the EMI that already has been deducted in March to meet any liquidity need during the disruption caused by COVID-19 pandemic.
Rather it may be like a double whammy for the borrowers as on one side income has been hit due to the COVID-19 pandemic and on the other hand there is a threat of increased tenure if they opt for the RBI relief measure.
In a note to customers, the country's largest lender State Bank of India said "interest shall continue to accrue on the outstanding portion of the term loan during the moratorium period".
Releasing Frequently Asked Questions (FAQ), Indian Banks' Association (IBA) said that borrowers whose incomes have not been impacted should pay their EMIs in time.
"You may take the benefits under this (RBI) package if there is a disruption in your cash flows or there is loss of income. However, you must take into account that the interest on the loans, though not mandatorily payable immediately and gets postponed by 3 months, continues to accrue on your account and results in in higher cost," IBA said.
To give you a perspective, it said, "suppose your loan outstanding is Rs 1,00,000 and you are charged 12 per cent rate of interest on your loan, then every month you are liable to pay Rs 1,000 as interest. In case you opt not to service the interest every month, you are liable to pay interest at 12 per cent per annum, and accordingly you will pay Rs 3,030.10 at the end of the 3rd month".
This means that once the moratorium period ends, your loan tenure will get adjusted to your repayment, including the interest payment burden. In other words, the EMI burden only gets postponed for a while.
Most banks are giving an option for customers to apply for the three-EMI moratorium, or to ‘opt in’ (apply) for the scheme rather than ‘opt out’.
While SBI and other PSU banks are offering an automatic deferral option to customers, private banks are seeking an initial consent from the customer if he/she wants the deferral.
ICICI Bank, on its website says. “In case you choose to opt for a moratorium, then the applicable interest on the amount outstanding will continue to be charged during the period of moratorium. The payment schedule would be extended to recover the postponed instalments which will include the outstanding principal and interest.”
According to IDFC First Bank’s website, customers have to apply for the moratorium. “To apply for the moratorium, kindly write to us from your registered email address with your mobile number and loan account number and we will activate the moratorium for the unpaid EMI of March 2020 if any, and for EMI of April and May 2020,” the bank said.
SBI’s approach of applying the moratorium without seeking customer’s consent may lead to unexpected burden for the customer when the additional interest payment finally reflects in their loan schedule post the moratorium period. This will be particularly true about customers who are not informed or aware about the interest payment part of the moratorium offer. Logically, this may lead to future disputes.
If you have enough cash flows to continue loan repayments, it is better to do that. This is because ultimately, the loan repayment burden, including the accrued interest component, will fall on you.