PUBLIC SECTOR BANKS AND THE PUBLIC

Banks are intermediary financial establishments between the government and the people. Banks normally do not have to do anything of their own. They must strictly adhere to the socioeconomic policies of the government in close association. While all the policies formed by the government are for the betterment of the people, banks should ensure that all decisions and actions taken by them too are in the same direction. The primary target of a government in a country like India should be to bridge the gap between the poor and not so poor. Banks can play a significant role in this direction.

Of late we find that the banks, especially those owned by the government, are taking many negative steps. These banks have become pure commercial establishments vying with one another to squeeze the people of the country. State Bank of India, the premier bank of the country, is undoubtedly doing the maximum harassment to the common man. Consequent upon the merger of five associate banks and Bharathiya Mahila Bank, SBI have a deposit plus advances of ₹ 41 lakh crores. According to available information they are now in the top fifty bracket and putting best efforts to get into the thirty group. Registering a profit of ₹2,814.82 Cr during the first quarter SBI is all set to make a profit over ₹ 12,000 crores during the current financial year. This so called achievement holds a black mark on their forehead when they have collected ₹ 235.06 crores for the first quarter ending  March 2017 from 388 .74 lakh account holders for not maintaining the monthly average balance. SBI expects to realise over ₹ 2,000 crores on this account during the current fiscal year.  Most of these account holders are extremely poor people and many of them have opened the bank accounts with an assurance that their accounts shall be in zero balance category. Without their proper consent the banks have prescribed minimum balance limits and started drawing from their hard earned deposits to enhance the profit of the so called people's banks. Further to these,  this action strongly pronounce a truth, that about 4 crores Indians holding saving accounts in SBI are unable to maintain the so called minimum balance prescribed by the bank.

What is the offence these poor men have committed? They might have withdrawn some money to treat their aged parents, or to buy food to feed their children. They are now asked to pay the penalty for these 'inhuman' actions. What a government and what a bank 'of the people!' The most significant aspect surface here is why should the bank make huge profits. It is simply like a socialist government making a huge surplus budget. At the most they may make profit to the extent of maintaining the money value, not beyond that.

The banks while fixing counts for drawing money from the ATM, they should know that their are many aged people who draw ₹ 100/- at a time. Their poverty should not be penalized. Some of them might have shed their blood to get independence for this great nation. It is to be asserted and reasserted, therefore, that these banks are not doing these gimmicks with their own money but the money belong to the people of this country. The banks should immediately stop imposing penalties in the name of minimum balance and also should lift any restrictions in using the ATM. If these paltry facilities cannot be offered to the people by the banks owned by a people's government, there is no meaning in our shouting that we are the largest democratic nation of the world.

KV George
kvgeorgein@gmail.com