SBI expects to realize Rs.2000 crore from account holders that have failed to maintain a minimum balance in their savings accounts. This sum may partially be used recover the costs sustained on the Aadhaar-bank account linkage. The managing director of SBI termed the linkage obligation as “a very costly affair”. He said, “The recent directive of the government to link all savings bank accounts with Aadhaar by December 31 was a “very costly affair” as lenders were already facing high costs in maintaining such accounts and complying with the KYC (know your customer) requirement.”
The government has mandated that all bank accounts be linked to Aadhaar cards. Failure in doing so by the end of the year, December 31, will force the account to being invalid.
The country’s largest public lender also said that they continuously invest in technology to smoothly operate the day-to-day transactions made in the savings accounts.
On the 1st of April, SBI obligated all savings bank accounts in metropolitan cites to maintain a minimum balance of Rs.5000. Urban, semi-urban, and rural areas were required to maintain a minimum balance of Rs.3000. Rs.2000 and Rs.1000 respectively to avoid the penalty. 20% of the 27 crore savings bank account had defaulted in maintaining the balance.
SBI now has 40 crore savings bank accounts, out of which 13 crore accounts are excused from maintaining a minimum balance as they are either Jan Dhan accounts or Basic Savings Bank Deposits (BSBD).