NEWS & ADVICE : HOME LOANS
No frill a/cs to be chargeable per transaction: wants SBI
By Joseph Samson
Oct 25, 2010
Print    Email    RSS   

The largest lender of the country, State Bank of India is planning to charge its no frill account holders for each transaction they make in order to make feasible the operations of these accounts. No frill accounts were opened by the bank as a part of its financial inclusion program.

According to a senior official of the bank, account holders should not be dissatisfied while paying a nominal fee which can either be based on the amount transacted or a fixed one.

"The question on our minds is -- how do we make the operations of the model feasible? We can recover the Rs 20,000 required for setting up infrastructure in a village through a kiosk or palm-held device by opening around 100 accounts and charging Rs 200 as account-opening fees," the official said.

"You cannot have a model under which the financial inclusion roll-out is subsidised, it needs to be sustainable," he added.

He said that the bank has to maintain a lot of functions like back end systems and payment to the business correspondents appointed for banking operations, he said.

Talking about regulatory issues regarding this move, he said, "though the regulators have given us all the freedom, it is very difficult to say (what their reaction will be)."


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #4
How to increase one’s Home Loan Eligibility
Can we claim tax benefits on home loan and...
Hybrid loans – are they beneficial?
Carnival of Indian Personal Finance Blogs #3


DO YOU NEED A LEGIT LOAN COMPANY ?
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive