Issue 2 dailies final1

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The Daily

BSERVER An IIJNM Publication

Tuesday, 4 April, 2017

SBI to penalise for account balances under Rs 5000 Ahana Chatterjee ahana.c@iijnm.org The State Bank of India last month announced that all account holders with the bank should have a minimum balance of Rs. 5000 in their savings account. Failing to maintain will result in penalties, the bank said. India’s largest bank with around 20,000 branches, the State Bank of India’s (SBI) move will impact a lot of people. As of 2016-17, SBI had total assets of 30.72 trillion, which will likely increase in the next fiscal year due to a recent merger with the five more associates. The bank has 50 crore customers and 74 crore accounts. In urban, semi-urban and rural parts, account holders have to maintain a balance of Rs. 3,000, Rs. 2,000 and Rs. 1,000 in their accounts, respectively. The bank has also decided on penalties in accordance to the economic conditions of regions. For rural areas the penalty

is Rs. 20 to Rs. 25 with service tax. This rule was implemented in Delhi, Mumbai, Chennai, Kolkata and Bengaluru takes under its ambit students and below poverty line people living in these cities as well. Jan Dhan Account holders have been made an exception to this, however. “Changes might be made again, depending upon the result,” a spokesperson from the bank said.

“The profit margins are coming down and hence the bank has come up with this rule. Savings accounts will get more interest rate. Earlier they used to get 4 percent interest and now they will get 4.5 percent interest rate without tax deducted at source (TDS). This is a positive step from our side. Also, if one is making a fixed deposit, they will get 6 percent interest from now on

without TDS,” he added. SBI’s news has prompted customers to plan a boycott on April 6. Other protests are planned for April 24-26 if the bank does not amend the rule. Changes have been made to the process of withdrawal from the bank’s ATMs as well. Now if a person withdraws money more than thrice from another bank’s

ATM, they will be charged RS.20 and if they withdraw more than five times from SBI’s ATM, they will be charged Rs. 10 per transaction. People, who are currently not earning and have shifted to a different city, could find it difficult to maintain the minimum account balance. Also, only three penalty- free deposits are allowed each month and if one exceeds that limit, they will have to pay a penalty of Rs. 50 with service tax. “Speaking as someone who studies in a different city, this is going to take a toll on students. No matter how frugal you are, there are a lot of expenses, sometimes emergency situations where you might need to take out a reasonable amount. It will only be difficult to keep a conscious tab on your bank balance when you are juggling life and expenses all by yourself,” Somdyuti Datta Ray, a student from Asian College of Journalism, Chennai said.

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Rolling out of BS III engines, auto dealers fear business losses Bhakti Tambe bhakti.t@iijnm.org In a landmark judgement, the Supreme Court on 29 March ruled that vehicles not compliant with Bharat Stage IV (BS IV) emission standards cannot be sold after 31 March. The Federation of Automobile Dealers Association (FADA) petitioned the Supreme Court against the ban on selling Bharat Stage III vehicles (internal combustion engines and Spark ignition engines) beyond 31 March, highlighting financial and employment loss. John K Paul, president, FADA told the livemint, “The move will impact 20,000 dealers and 900,000 vehicles. India has moved to BS IV fuel across the country from April 1. Auto dealers had to bear the losses since the cut-off date decided by the Environment Pollution Prevention and Control Authority gave very short time to sell the finished products, claimed Paul. Paul further added that the ban

All the vehicles with BS-III engines cannot be sold from April 1 Courtsey:Durwas Rane

on BS III vehicles will also affect jobs in sales and service, particularly for smaller dealers and subdealers. A Supreme Court bench headed by Justice Madan B. Lokur rejected the government’s submission and petitions to allow the continued sale of BS III vehicles. It ordered transport authorities not to register vehicles that do not meet BS IV emission standards beginning on 1

April. The rule was initiated in 2005 and some automobile manufacturers started rolling out to BS-IV right after the availability of fuel. “Hyundai has stopped manufacturing BS-III vehicles since 2009 for the welfare,” said Harish, spokesperson of Advaith Motors, Bangalore. Although the ban was intimated years before, the update of

fuel stages was delayed. “It is quite unfortunate that we have to make sure all the pre-registered vehicles with BS-III are sold,” said a Honda dealer in Bangalore city. “The number of such vehicles (BS-III) may be small compared to the overall number of vehicles in the country, but the health of the people is far, far more important than the commercial interests of the manufacturers or the loss that they are likely to suffer in respect of the so-called small number of such vehicles,” the Supreme Court bench said. “The manufacturers of such vehicles were fully aware that eventually from 1st April, 2017 they would be required to manufacture only BS IV compliant vehicles, but for reasons that are not clear, they chose to sit back and declined to take sufficient pro-active steps,” the bench said. Many environmentalists welcome the Supreme Court’s judgement. “Restricting BS III vehicles is a welcome move by the judiciary as this would help in lowering the emissions due to inefficient fuel

burning,” said Dr. T.V. Ramchandra, Centre for Ecological Sciences, IIS, Bangalore. Tata Motors in its official statement released on 29 March said: “The decision by Hon’ble Supreme Court to ban sale of all BSIII vehicles from April 1, 2017 is an unexpected and unprecedented move that will have a material impact on the entire automotive industry, OEM’s and dealer network.” The Hindustan Times on Tuesday reported that 6,000 temporary staff at Tata Motors’ Jamshedpur plant have been let go since the 1 April ban. But Suresh Rangarajan, head of Tat Motors corporate communications, was quick to debunk the report, calling it “malicious.” Amlesh Kumar Rajak, president of Telco Union, Jamshedpur, explained: “Currently, there is not much demand for the vehicles with BS-IV engines; hence, they’ve temporarily asked temporary workers not to come on the job. But, this is a routine activity and this lay-off lasts maximum for 10 days.” (With inputs from Divya R)


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