SBI Merge: Things to Know
Several are the number
of banks and the services they offer. Oh wait; we cannot call it services, no
more with these killing service charges. Better call it business offers. This
is not an exaggeration, but a bitter truth with the merger of SBI with subsidiary
banks, including State Bank of Travancore. The consequences of this merging is
far reaching, counting both positives and negatives.
Partners
here after
Besides the State Bank
of Travancore, the State Bank of Bikaner and Jaipur, State Bank of Mysore,
State Bank of Patiala and State Bank of Hyderabad are the merging units for State
Bank of India, in a nation-wide perspective. These banks now seem to be the
partners in agony and they exist nowhere, giving up their true identity and
renamed as State Bank of India. Their assets have been transferred to the
parent bank and their curtain fell down, even that of State Bank of Travancore after
72 years of its service here in Kerala.
Why
they resist?
SBT and other
provincial bank unions as well as employees stood against this merging. Why? Counting
the 1400 branches of State Bank of Travancore, around 400 branches are expected
to be wounded up, resulting in job loss for hundreds of employees. It is said
that the merger will benefit the private banking entities and corporate giants alone.
Various unions and political parties, including the ruling party have tried to dismiss
the merge, using their nails and hairs, but ended up in vain.
Imminent
Hope
But with this largest
consolidation ever in the banking history of India, SBI is expected to make it
into the list of 50 largest banks in the world. Above that, SBI will turn as a
centralized bank that people can depend, unlike RBI, the federal banking system
prevailing in India.
Hopefully, the long
term benefits will outweigh the near-term challenges. SBI will be able to
finance more and more mammoth projects that will lead to economic development
of the country. Adoption of development of technologies in associated banks
will be faster, despite the delay it causes otherwise.
With the merge, SBI
will turn to be a global lender with an asset base of Rs.37 trillion, which is
37 lakh crore, 22,500 or more branches and more than 58,000 ATMs. With more
than 50 crore
customers, SBI will have a three times sound existence, than the second largest
bank in India.
New Rules
– Highlights
Ø Deposit
money in your account, three times for free and thereafter with Rs. 50 per deposit.
Ø Minimum balance
to be kept in all accounts as
o Rs. 5000
for accounts in metro cities
o Rs. 3000
for accounts in town/city
o Rs. 2000
for accounts in semi-urban area
The failure
to maintain the minimum balance will cost a penalty between Rs.50 to Rs.100,
plus service charge.
Ø Free ATM
withdrawal up to 5 times, and thereafter with Rs.10 as service charge. If withdrawing
from other bank’s ATM exceeds 3 times, the penalty will be raised to Rs.20.
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