SBI’s Undue Enrichment from Exploitative Charges on UPI and RuPay Transactions- Imposition of Discriminatory and Unreasonable Charges for Transacting Digitally in a BSBDA

Abstract

This report is a follow-up of the two related articles by the author on BSBDA that appeared on April 11, 2021 and April 18, 2021. The April 18, 2021 article provides a rebuttal in form of a ‘Statement of Facts’ to SBI’s “Statement of clarification on media reports based on the Study by IIT Bombay”. In this report, we provide estimates on the collections made by SBI from Basic Savings Bank Deposit Account holders on UPI and RuPay debit card digital transactions, when charged @ Rs.17.70 per transaction. Such collections that have been estimated to be over Rs 164 crore (for the period April 2017 through December 2019) are shown to have been exploitative and unreasonably charged. SBI is still holding back these funds. On the one hand the country envisages a less-cash society, while on the other hand the BSBDA customers had been disincentivised in their digital transactions for day-to-day payments. While having embraced digital means for transacting, the BSBDA customers remained an unprotected lot since SBI’s actions amounted to exploitation of this marginalized section of the society through imposition of usurious service charges for digital transactions.