Published: Tue, March 13, 2018
Business | By Max Garcia

SBI slashes monthly balance charges by 75 per cent

SBI slashes monthly balance charges by 75 per cent

SBI cuts down charges on minimum balance maintenance.

The State Bank of India on Tuesday reduced its charges on non-maintenance of an average monthly balance (AMB) in the savings account by up to 75 percent, effective April 1.

In fact, when the news came that the SBI did not get the average monthly balance, after receiving a huge amount of Rs 1,771 crore in just 8 months, the bank started facing criticism. For semi-urban and rural centres, the penalty has been reduced from Rs 40 to Rs 12 a month.

SBI now charges penalty from customers for non-maintenance of monthly average balance in savings accounts.

For urban and metro customers average monthly balance is of Rs 3,000 per month. "Bank also offers its customers to shift from regular savings bank account to BSBD (Basic Savings Bank Deposit) account on which no charges are levied", said PK Gupta, MD, Retail & Digital Banking, SBI.

The country's largest bank has 41 crore savings bank accounts. The charges were reduced from Rs.50 to Rs.15. The SBI said that the step was taken following a feedback from various stakeholders.

The reply was to a specific query on the number of accounts being closed after introduction of charges on non- maintenance of minimum balance from April 1, 2017.

According to release, for semi-urban centres, the charges have been reduced from Rs 40 to Rs 12 per month plus GST and for rural centres. Other government banks that were already collecting amounts in excess of Rs 50 crore as penalty from customers for falling below their minimum average balance requirements included Punjab National Bank, Canara Bank and IDBI Bank. However in October, it had revised down the charges to some extent. This penalty was brought down to Rs 30-50.

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. Besides, students aged below 21 years are also not required to maintain minimum balance. This was more than its September quarter profit of Rs 1,581.55 crore.

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