'Fine for non-maintenance of min balance an organised loot':MP

A Lok Sabha MP today asked the government and the RBI to strictly direct banks to scrap their plan to levy a penalty on non-maintenance of minimum balance in accounts from April 1, terming it an "organised loot".

Raising the issue during Zero Hour, K C Venugopal (Cong) said the SBI and other banks have taken a "unilateral decision" to levy the penalties and have found "a new way to loot" the people.

"Government and the RBI must give strict direction to banks to avoid this organised loot," Venugopal said.

The Reserve Bank has permitted banks to levy charges for breaching the minimum balance limit.
 

As per the list of revised charges of SBI, the failure to maintain Monthly Average Balance (MAB) in accounts will attract a penalty of up to Rs 100 plus service tax.

In metropolitan areas, there will be a charge of Rs 100 plus service tax if the balance falls below 75 per cent of the MAB of Rs 5,000. If the shortfall is 50 per cent or less of the MAB, then the bank will charge Rs 50 plus service tax.

The charges and MAB varies according to the location of bank. It is minimum in the case of rural branches.

Venugopal said although the government has asked the banks not to impose such charges but the banks are going ahead with the move from April 1.

Raising the issue of disinvestment of Cochin Shipyard in the Lower House, N K Premachandran (RSP) demanded that the government should "withdraw" the plan in view of the workers' strike.

The government is planning to launch an Initial Public Offering (IPO) in Cochin Shipyard.

"The workforce of Cochin Shipyard is striking. I urge the government to withdraw the proceedings on disinvestment of Cochin Shipyard," Premachandran said.

Hema Malini (BJP) raised the issue of farmers not having technical knowledge about the soil and demanded mobile soil test vans for their benefit.

She said the benefits of kisan primary soil health card scheme could not be reached to all farmers and there was a need to give them training at block level.

"I demand that mobile soil test vans be made available which can go to villages and give soil test results to farmers on the spot," Malini said.

Raising the issue of rising cancer cases in the country, Devji Patel (BJP) demanded that 'gutka' and cigarettes be completely banned, just like opium.