Page 8 - Banking Finance April 2018

BANK UPDATE

SBI closes 41.2 lakh sav- Axis Bank planning to process payments over
ings accounts for not WhatsApp
Private sector bank Axis Bank Ltd is planning to process payments over
keeping minimum bal-
'Whatsapp'. The bank also termed the Unified
ance Payment Interface (UPI) as a "huge opportu-
nity". "We are also working with partners like
Google, Whatsapp, Uber, Ola and Samsung pay
to be able to create the ecosystem for custom-
ers to be able to make payments," Axis Bank
executive director - retail banking, Rajiv Anand said.

State Bank of India has closed 41.16 AIBOA demands 'Central Banking Authority'
lakh savings accounts between April- The All India Bank Officers' Association (AIBOA) has demanded formation of an
January in the current fiscal year for autonomous 'Central Banking Authority' to oversee the
not maintaining the average working of commercial banks and audit of their ac-
monthly balance, revealed an RTI counts by the Comptroller and Auditor General.
query.
This demand comes in the light of Rs.11,400-crore
"Due to provisions of penalty on non- worth of fraudulent letters of undertaking issued at
maintenance of minimum balance, one of Punjab National Bank's Mumbai branches es-
the bank has closed 41.16 lakh sav- caping the attention of internal and external auditors
ings bank accounts between April 1, as well as the banking regulator. The Association said
2017 and January 31, 2018," the the RBI is burdened with multiple roles.
bank replied to an RTI query filed by
Chandra Shekhar Gaud from "As the commercial banking system has itself grown
Neemuch in Madhya Pradesh. in geometric progression, with deposits of Rs.108 lakh crore and advances of
Rs.82 lakh crore - totalling Rs.190 lakh crore, the RBI appears to be finding it
The reply was to a specific query on difficult to maintain dynamism of all its limbs (including supervision, controlling,
the number of accounts being closed and inspecting the working of commercial banks)," said S Nagarajan, General
after introduction of charges on non- Secretary, AIBOA.
maintenance of minimum balance
from April 1, 2017. Hence, Nagarajan felt that it would be better to constitute a Central Banking
Authority, which will be autonomous but accountable to Parliament, to oversee
The State Bank has 41 crore savings the working of commercial banks.
bank accounts. Of that, 16 crore are
under the Pradhan Mantri Jan Dhan
Yojana/basic savings bank deposit Funds under Jan Dhan A/c cross Rs. 75,000 crore mark
(BSBD) and of pensioner, minors, so- The balance under the Pradhan Mantri Jan Dhan Yojana has crossed the mile-
cial security benefit holders which stone of Rs. 75,000 crore for the first time
are all exempted from the penalty since the inception of scheme. As on March
for not maintaining of the minimum 9, the total balance in these accounts stood
balance. at Rs. 76,116 crore with 31.31 crore benefi-
ciaries. Of these, 18.45 crore accounts have
Between April and November 2017,
the bank had netted a windfall of Rs been opened in rural and semi-urban bank
1,771.67 crore, more than its second branches.
quarter profit, from customers for Public sector banks have reported a balance of Rs. 61,156 crore. This was fol-
non-maintenance of minimum bal- lowed by Rs. 12,780 crore and Rs. 2,180 crore in regional rural banks and pri-
ance, according to the finance min- vate sector banks, respectively. About 23.60 crore RuPay cards have been is-
istry data. sued by the National Payments Corporation of India.

8 | 2018 | APRIL | BANKING FINANCE