Money & Banking
SBI, Canara Bank, Bank of Maharashtra again hit customers with hiked charges
Nationalised banks such as State Bank of India (SBI), Bank of Maharashtra and Canara Bank have hiked charges for several services or facilities provided to customers. These include increase in charges for chequebook issuance, signature verification, cash handling charges, withdrawals beyond stipulated numbers and card issuance charges. Interestingly, Bank of Maharashtra, in a communication issued to its officers and clerks, has asked them to levy these charges manually on a daily basis as the system is not doing the job!
 
For issuance of local chequebook, reconstitution of account, addition or deletion in account, change in mobile number, photo attestation and for sign verification, Bank of Maharashtra charges Rs115 from customers. For signature or photo verification, Canara Bank will be charging Rs150 per case of attestation from 1st July, as against the existing Rs100.
 
  
 
Many of these banks are simply following SBI in increasing service charges that directly add to their profits. For example, Canara Bank, which had no cash handling charges till now, will levy Rs50 to Rs2,500 for cash deposits beyond Rs50,000, from July onwards. These charges would be applicable across all its branches, cash deposit machines and kiosks. Canara Bank has also decided to levy Rs20 per transaction as declined charges at other bank ATMs when there are insufficient funds.
 
  
 
If a customer of Bank of Maharashtra wants to enquire about an old entry, she will have to shell out Rs230 if the period is beyond 12 months and Rs173 if the period is less than 12 months.
 
SBI,  has revised its service charges for basic savings bank deposit (BSBD) accounts, whereby the customer would be charged Rs30 for issuance of a 10-leaf chequebook. The bank would issue only RuPay classic card free of cost, while for all other cards the customer has to pay stipulated charges. For BSBD customers, SBI allows four free withdrawals per month, beyond which the customer has to pay Rs50 per transaction at branch, Rs20 at other branch ATMs and Rs10 at SBI ATMs. These charges exclude service tax and would be applicable form 1 June 2017.
 
 
The country’s largest lender has not spared even its own e-wallet users from this hike. Users of State Bank Buddy mobile app have to pay Rs25 per transaction for cash withdrawals from wallet balance through ATMs. If the customer uses the services of bank correspondent (BC) for depositing cash in her own wallet, she will have to pay a minimum Rs2 per transaction. For cash withdrawal of up to Rs2,000 from the same mode, the customer will have to pay a minimum Rs6 per transaction.  
 
 

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COMMENTS

Ramesh Poapt

3 weeks ago

customer....'cust'(hindi) se jo 'mar'(hindi) jata hai!

Natarajan Krishnan

3 weeks ago

State Bank of India charges are very high and not justified. They are charging annual maintenance charges for savings accounts and also for ATM separately though they are not issuing new ATM cards. So annual maintenance charges for ATM is not at all justified. They may charge if the minimum balance is not maintained, but cannot charge for issue of cheques as government is recommending bank transactions and discouraging cash transactions.

David M. Thangliana

4 weeks ago

Shameful (or is it shameless?)!!!

Omprakash Hundia

4 weeks ago

बैंको के बढते हुये चार्जेस
लगता है रिजर्व बैंक ने बैंको को विभिन्न बैंकिंग सेवाओं के लिये मनमाने चार्जेस लगाने की छुट दे दी हैं। आम आदमी और छोटे कारोबारीयों को सबसे ज्यादा मार पड रही हैं । माननीय मोदी के देश मे केशलेस ट्रांजेक्शन और मोबाईल बैंकिंग को बढावा देने की कोशिश को इससे जरुर धक्का लगेगा और बैंको मे जाने से लोग कतराने लगेंगे। रिजर्व बैंक और सरकार को चाहिये कि इस मामले मे विभिन्न व्यापारिक संगठनों और अन्य स्वयंसेवी संस्थाओ से राय ले और बैंको के एकतरफा आक्समिक और असामायिक निर्णयों पर रोक लगावे।

Mohan Dixit

4 weeks ago

thenwe have to hoard cash to save on cheqe books minimise ATMtransactions etcetc

Ramesh Poapt

4 weeks ago

npa writw off karna ahi aur haircut bhi bada karna baki hai bhai!
aur garib ki joru sabki bhabhi...

BISHNU PRASADA DASH

4 weeks ago

SBI is trying to bulldoze the opposition to its hike of charges. The Govt has to take responsibility to some extent. By Classifying SBI as TBTF bank the Govt has ensured that SBI become dominant. SBI Services are the worst. I really dont mind paying if the services are good (e.g. Pvt Banks). The Govt has ensured that SBI get a good business by directing all Govt Transactions to be done through SBI. Pension payments through Banks has to be through PSBs (SBI as usual gets the major share as TBTF). I think SBI will face a real hurdle if all these freebees (Govt Transactions, Pension payments) are allowed to be shifted to Banks providing better service.

BISHNU PRASADA DASH

4 weeks ago

SBI is trying to bulldoze the opposition to its hike of charges. The Govt has to take responsibility to some extent. By Classifying SBI as TBTF bank the Govt has ensured that SBI become dominant. SBI Services are the worst. I really dont mind paying if the services are good (e.g. Pvt Banks). The Govt has ensured that SBI get a good business by directing all Govt Transactions to be done through SBI. Pension payments through Banks has to be through PSBs (SBI as usual gets the major share as TBTF). I think SBI will face a real hurdle if all these freebees (Govt Transactions, Pension payments) are allowed to be shifted to Banks providing better service.

Hemant Dehadray

4 weeks ago

This is not only with respect to the banking transactions, but in case, if a security is sold, which is held in electronic form, then the bank levies certain charges for releasing the security which is highly ujustified as the bank in reality does not do any activity and can be compared to cheque sent for clearing and cleared thereafter. This matter should also be taken up with NSDL.

ishu sabar

4 weeks ago

This is not at all fair.. One time was dr when government asked every single person should have bank acc that too with zero balance and when now they are having, they increase the charges of every thing. Even for minimum balance. Y they don't go with there word.

Amit Anam

4 weeks ago

This is crowd funding to recover Mallya's loan

Hemant Dehadray

4 weeks ago

The banks are behaving like traditional zamindars, trying to squeeze to the maximum possible extent, as were prevalent in pre independence era.

MUKESH AGARWAL

4 weeks ago

Actually, Indians are well cheated as difference in wholesale price and retail price is so large that middleman are sucking the hardened money. The tur pulse in WM is 66/- per kg but in retail shop malls it is sold for 90 to 130 per kg. Same is 90% items even in medicine Rs. 10/- costing generic medicine is sold under brand name for Rs.70/-. The drinking water 1 L bottle Rs. 15/- retail price which is off course high as Whole sale it is 9/- is sold at market, railway station, bus station, pilgrimage places for Rs. 20/- and inside airport Rs. 40/- to Rs. 60/-. while we are also paying airport development fee. The taxi rate are double at airport than OLA rate for same distance and when sufficient customers are available. We are paying a lot for nothing and not crying?

lakkur vijayakumar

4 weeks ago

Simple exploitation by banks. Government should look in to it

MUKESH AGARWAL

4 weeks ago

Bank charges are nominal than the Government Charges on various services. Bank also do a lot of work for government for which no fee is paid by Govt to Bank. e.g. Opening of branches late and in holidays in last 4 days of FY for income tax deposits. We understand that more than 10 Crs is paid per bank as working on holiday and Overtime while IT is required to be paid online. Similarly for Mudra Camp, Jandhan yojna accounts, Aadhar Card Campaign, Atal pension , Bima yojna, DBT all is free by Bank to Government. So Bank have to survive . Bank charges only which is generally over use of Bank or default on part of customers.

Nifty, Sensex may struggle to head higher – Monday closing report

We had mentioned in Friday’s closing report that Nifty, Sensex were in a rally mode again. The major indices of the Indian stock markets rallied on Monday and closed with handsome gains over Friday’s close. The trends of the major indices in the course of Monday’s trading are given in the table below:

Indian equity markets traded on a flat-to-positive note during the mid-afternoon trade session on Monday as healthy buying was witnessed in consumer durables and FMCG (fast moving consumer goods) stocks. The key indices touched new intra-day highs, with the NSE Nifty scaling 9,637.75 points and the BSE Sensex 31,214.39 points. However, the indices receded from their highs as investors booked profits and healthcare, banking and IT (information technology) sectors continued to extend losses.

Sun Pharmaceuticals Industries shares fell 10% after the company reported a 13.6% year-on-year drop in its consolidated net profit to Rs1,223.71 crore in the quarter ended March. Banking stocks currently pressurised the market sentiments, led by Bank of India, PNB (Punjab National Bank) and Federal bank with more than 2% intra-day downside.
 
Real estate company Omaxe Ltd. on Sunday announced a 55% fall in its consolidated net profit for the fourth quarter ended March at Rs12.98 crore, compared with Rs29.03 crore in the same period of 2015-16. Consolidated income from operations during the said quarter, however, increased 20% to Rs 451.92 crore, from Rs376.11 crore in the corresponding period of the previous fiscal, the company said in a statement. The state-run Indraprastha Gas Ltd (IGL) supplying cooking gas and vehicle fuel to Delhi, Noida, Greater Noida and Ghaziabad has reported a 23% rise in net profit for the fourth quarter ended March at Rs133.5 crore, buoyed by better turnover and sales. The supplier of compressed natural gas (CNG) and piped natural gas (PNG) in the National Capital Region had posted a net profit of Rs108.96 crore in corresponding period of 2016. "During this period (January-March 2017), IGL registered a turnover of Rs1,100 crore as compared to Rs976 crore in the corresponding period last year, thereby showing a growth of 13%," the company said in a release here on Saturday.  "There has been an overall sales volume growth of 16% over the corresponding quarter in the last fiscal, with CNG sales volume growing by 11% and PNG sales volume growing by 25%," it added.  For the entire fiscal 2016-17, IGL's net profit has grown an impressive 36% to Rs570.21 crore, from Rs418.7 crore in the previous fiscal, "driven by higher volumes".  "During 2016-17, total sales volume grew by 14% over the previous year with CNG recording 10% growth in volumes and PNG recording volume growth of 19%." IGL's average daily gas sale during the year has gone up to 4.59 mscmd (million standard cubic metres per day) from 4.01 mscmd in the previous year.  "The board has recommended a final dividend of 50% for consideration of the members in the annual general meeting in addition to 35% interim dividend already declared and paid," IGL said. IGL shares closed at Rs1,018.00, down 0.84% on the BSE.
US stocks posted solid gains for the week, with both the S&P 500 and Nasdaq refreshing their record highs a few times, as Wall Street digested the minutes from the Federal Reserve's meeting as well as a string of economic reports. According to the minutes, most Federal Reserve officials see it appropriate to raise interest rate soon if economy continues to improve, Xinhua news agency reported on Saturday. "Most participants judged that if economic information came in about in line with their expectations, it would soon be appropriate for the (Federal Open Market) Committee to take another step in removing some policy accommodation," said the minutes released on Wednesday. During the meeting, Fed officials also discussed plans to reduce the central bank's 4.5-trillion-U.S. dollar balance sheet. Nearly all policymakers favoured a plan to increase caps or limits on the amount of Treasury and agency securities that would be allowed to run off each month.  
 
“The market likely expected the Fed to leave the option of a quicker than currently anticipated reduction of the balance sheet open; but it is clear the Fed wants the reduction of the balance sheet to be behind the scenes and systematic after initially announced," said Jay Morelock, an economist at FTN Financial.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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Discontent over GST classification grows. CAIT seeks reclassification
There is growing discontent, especially among the trading community, over the classifications under the goods and service tax (GST). Items, which were in the lower category under value added tax (VAT) are now being categorised in higher tax slabs under GST, says a traders' body.
 
In a release, the Confederation of All India Traders (CAIT) said, "...classification of different items under various tax slabs of GST has created an environment of anxiety and concern among the trading community across the country, leading various verticals of retail trade to demand lower tax on the items being dealt by them since they have been categorised under higher tax slab in comparison to tax slab of current VAT tax regime."
 
About 1,211 goods and 36 services have been so far classified under GST, of which nearly 50% goods have been placed under 8% rate, 14% under 5% rate, 17% under 12% rate and 19% under 28% rate. The GST Council is yet to decide the tax bracket for items like textiles, gems and jewellery, and footwear. In view of the growing discontent over proposed GST rates, CAIT says it has urged the government to revisit the rate schedule.
 
It says, "The wider impact of the classification of items under different tax slabs needs to be gauged very cautiously, since under GST not only the taxes paid on goods but even the taxes paid on the services will be eligible for input tax credit, whereas on the other hand taxes paid on inter-state purchases of goods or availing services will also be eligible for input tax credit. Hitherto, both these advantages were not available under VAT tax regime. Therefore, impact on the prices of commodities will have to be drawn after calculating advantages of input tax credit."
 
"However," the traders' body says, "items like auto spare parts, which are under 5% VAT slab, have been placed under 28%, though milk is exempted but ghee and butter have been placed under 12% GST slab. Items related to construction and infrastructure like cement, builders hardware, iron & steel have been placed under 28% expecting to make housing and infrastructure costly under GST regime. General consumables like turmeric, jeera, red chilly, and dhania have been placed under 5% instead of exempted goods unlike other food products. Hand bags, wallet and similar items have been under the slab of 28% similar to marble, stone, iron & steel, and plywood used for construction of buildings. Pickles, sauces, instant mixer and some of the other items pertaining to food processing have been placed under 18% tax slab though these are consumed by large number of common people across the country. Though, utensils are in 12% tax rate but other incidental items like cutlery have been placed in 18% tax slab. Items used by students like crayon, pastels have been under 12% tax rate. Though contraceptives have been under exempted category, women hygiene product sanitary napkins has been placed under 12% tax rate."
 
CAIT has suggested that, to make transportation more economical, the tax slab of tyres and tubes, pegged at 28%, may also be reduced to a lower slab.
 
"While carrying out fitment of goods under different tax slabs of GST, the motive is to expand the tax base, no cascading impact on prices and easy compliance of the taxation system. In furtherance of the same, the CAIT has suggested the Government to constitute a Joint Committee of senior Officials and representatives of trade and industry to iron out the difference of opinion on tax rates," says BC Bhartia, National President, and Praveen Khandelwal, Secretary General of CAIT.

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COMMENTS

B. Yerram Raju

3 weeks ago

It is impossible to satisfy all in a change over to a more tax complying regime as the trade that is used to evade and avoid taxes, putting wrong claims will have to move with GST to a more compliance regime. There is no reason to crib for the Hotel Industry and Tourism as the tax has been calibrated to meet the fundamental principle of impact and incidence of tax rate should aid compliance and be less burdensome. After a year of implementation the issues can be relooked and burden eased out basing on the compliance factor.
It is however necessary that the zero tax and 5% tax should be spread over large number of essential commodities. So shall be the digital transactions in the financial sector that should carry zero tax and banks should be barred from levying any service charge on such services.

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