SBI reduces charges for non-maintenance of average minimum balance

SBI reduces charges for non-maintenance of average minimum balance

SBI reduces charges for non-maintenance of average minimum balance

‎"We have reduced these charges taking into account the feedback and sentiments of our customers".

At SBI, in metro and urban centres, a customer has to maintain a AMB of Rs 3000, while in semi-urban region the AMB stands at Rs 2000 and in rural centres a Rs 1000 AMB is needed.

The charges for non-maintenance of AMB for clients in Metro and Urban centers have been diminished from a greatest of Rs 50 every month to Rs 15 every month.

SBI has reviewed its minimum balance requirement following a finance ministry report which showed that SBI collected Rs 1,771 crore during April-November 2017 as a penalty from customers for non-maintenance of monthly average balance in savings 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. A shortfall of 50% to 75% will now be charged Rs 12 instead of Rs 40. This penalty was conveyed down to Rs 30-50. These revised charges will be effective in India from 1st April 2018.

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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.

Interestingly, while SBI provided relief to customers in regards to AMB in savings account, it also encouraged customers for shifting towards Bank Saving Bank Deposit (BSBD) account. The Bank has an exceptionally solid store establishment having 41 crores Savings Bank accounts out of which 16 crore accounts under PMJDY/BSBD and of beneficiary/minors/standardized savings advantage holders were at that point exempted. In addition, students upto the age of 21 years are also exempted, it said in the release.

The Bank also provides the option of converting the regular savings bank account to Basic Savings Bank Account (BSBD account), free of charge.

The decision comes after the lender faced severe criticism that the bank earned more from penalising customers who failed to maintain AMB than their July-September quarter net profit. My outgo on the ATM card itself is Rs 1,500 crore annually.

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