Indirectly, banks fined you more than what Vijay Mallya and Nirav Modi owe them

banking

The Hush Post|14:00 pm|1-min-read

Vijay Mallya, who had a majority stake in United Beverages, the face of Kingfisher Airlines and Royal Challengers Bangalore, owes approximately Rs 9,000 crore to various Indian banks. He made a fraud over years and is now in the United Kingdom. India wants him to be deported and efforts are on.

Nirav Modi, who is a diamond businessman also defrauded Indian banks. He owes more than Rs 11,300 crore.

From April 2015 to September 2018, banks in India have earned at least Rs 10,391.43 crore by charging you for just two things:-

  1. Failure to maintain minimum balance in saving accounts.
  2. Carrying out more than the permitted number of free ATM transactions in a month.

This amount is more than what Vijay Mallya owes, and is 92 per cent of the amount owed by Nirav Modi. This amount is just the one collected by public sector banks. It doesn’t include the earnings made by private banks by collecting fines. This information was shared by the Union finance ministry in the Lok Sabha on December 21.

However, penalty for non-maintenance of minimum balance is much higher in private banks as compared to public-sector banks. In 2015-16 and 2017-18, India’s three private banks Axis Bank, HDFC Bank and ICICI Bank earned Rs 4,054.77 crore by fining their customers for not maintaining minimum balance in their savings account.

Whereas, the Punjab and Sindh Bank is the only public sector bank that does charge any fine for non-maintenance of minimum balance in savings accounts.

The State Bank of India (SBI) has the largest network in the country. It is India’s biggest lender, earned the most (Rs 4,447.75 crore i.e. 43 per cent of the total amount earned by all public banks) by levying fines on these two aspects.

 

 

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