With the new regulations of State Bank of India mandating a minimum balance for savings accounts, a large section of people are likely to migrate to co-operative banks in Karnataka. Those running micro businesses, too, would consider closing their accounts with SBI and move to cooperative banks, experts say, reports New Indian Express.
The minimum stipulated balance for an account in a metropolis is Rs 5,000, while it is Rs 3,000 in urban areas, Rs 2,000 in semi-urban and Rs 1,000 in rural areas, failing which penalty will be imposed on the account holder.
In cooperative banks, the regulations are more conducive for small enterprises, a source is quoted as saying.
Several organizations including the Karnataka Small-scale Industries Association (Kassia) have opposed this move saying even ensuring Rs 3,000 or Rs 1,000 would be difficult for the common people.
Close the account and open a post office savings account for 50 Rs. Post office has much wider reach than SBI