State Bank of India promises service charge relief to Thiruvananthapuram Corporation

Thiruvananthapuram: State Bank of India is likely to be retained as Thiruvananthapuram Corporation’s banker, as the bank officials have met with Mayor V. K. Prasanth and promised to waive off service charges. Mr Prasanth said that the bank had agreed that there would be no service charges, in principle. “We are waiting for written confirmation,” he said. The Corporation’s primary accounts which were originally with the State Bank of Travancore had become SBI savings accounts after the merger.

However, the Corporation was unhappy with the service charges on each transaction and was looking at alternatives. For every additional transaction, the bank would charge '50 plus service tax. This would come to Rs 57.50 for Thiruvananthapuram Corporation. These spelt losses for the civic body which had to do at least ten transactions daily.

Also, officials have also been complaining of additional service charges levied on cash transfers from other SBI branches. Corporation officials said that being a public institution this was unfair, and that, in comparison, SBT was always ready to provide tailor-made banking solutions for the Corporation. The Mayor had then said that the Corporation would approach other banks, not just because service charges were imposed, but because the service itself was not up to mark.