SBI slashes charges on minimum balance in accounts

Nellie Chapman
March 13, 2018

The decision comes in view of the feedback from the various users.

In metropolitan areas, a shortfall of 50% or less in the average balance for a month will be penalised Rs 10 instead of Rs 30.

For rural and semi-urban centres, the charges have been brought down to Rs 10 and Rs 12 per month plus GST respectively from Rs 40 per month plus GST.

The charges for non-maintenance of AMB for customers in metro and urban centers have been reduced from a maximum of Rs. 50 to Rs.15 per month, excluding Goods and Services Tax (GST). "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.

The move will benefit 25 crore customers of the bank.

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SBI collected Rs1,771.67 crore from customers on account of non-maintenance of AMB between April and November 2017, according to the finance ministry's answer in Lok Sabha on 29 December. The public sector lender faced widespread flak for its minimum account balance charges, which were seen as hitting mostly financially weaker account holders. This means that the SBI has reduced the penalty for the balance sheet in the savings account.

Jan Dhan accounts, basic savings bank deposits, pensioners, social welfare beneficiaries and minors' accounts are exempt from AMB requirements. Earlier, metro and urban customers were charged Rs 40 to Rs 100 rupees for not maintaining average balance.

Of the 41 crore savings accounts with SBI, 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted from the feature. Besides, students aged below 21 years are also not required to maintain minimum balance.

However, the bank has not lowered the monthly minimum balance requirement which has been retained at Rs 3,000 for metro customers, at Rs 2,000 for semi-urban accounts and at Rs 1,000 for rural accounts. Last year, the SBI Bank issued a statement saying the penalty would be penalized if deposit amount was lower on April 1.

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