SBI minimum account balance penalty relaxed: All you need to know

State Bank of India- File

While the revised rates will be applicable from April 1, it is expected to benefit around 25 crore customers.

The State Bank of India closed almost 41.16 lakh savings accounts between April-January in the current fiscal year for not maintaining the average monthly balance, an RTI query revealed on Tuesday.

The rates have been slashed by nearly 75 percent, and will potentially benefit 25 crore of its customers, who hold regular Savings Accounts at SBI.

Charges for non-maintenance of average minimum balance in Metro and Urban centres have been reduced from maximum of Rs 50 per month plus GST to Rs 15 per month plus GST.

Along with this, the reduction in charges for not maintaining the minimum balance in the metro and urban centers category would also be reduced by 20-50%. The minimum balance for SBI savings accounts are Rs 3,000 for accounts in the Urban and Metro areas. "The bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied", said P K Gupta, MD - retail and digital banking, SBI.

If you are not an SBI customer, you will have to continue to be vigilant about the average balance in your bank account - unless it is a zero balance account, like a salary account and the financial inclusion accounts.

According to the last notification issued by the bank, account holder in urban, semi-urban and rural places had to maintain a minimum balance of Rs 3000, Rs 2000 and Rs 1000 respectively. The bank had subsequently lowered the AMB, following criticism from the customers.

In this case, the SBI Bank has replaced the penalty again.

SBI's plan to reduce the minimum balance requirement reportedly comes after the negative news on the income generated on the fees. The first thing to understand is the importance of the word "average". The rate of interest is same as savings bank account.

The penalty for non-maintenance of MAB is calculated on a staggered basis - depending on the shortfall - so be sure to go through your bank's website for the relevant details. Exempted accounts are those related to Pradhan Mantri Jan Dhan Yojana, basic savings bank deposit account, and accounts of pensioners and minors, among others.



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