SBI reduces minimum account balance to Rs 3,000: Things you need to know

First Published 26, Sep 2017, 9:36 AM IST
SBI reduces minimum account balance to Rs 3000 Things you need to know
Highlights
  • The change in minimum balance came after SBI analysed the customer feedback it received over charges for non-maintenance of minimum balance account.
  • If the average balance at the end of the month is between Rs 1,499 to Rs 750 then the penalty will be Rs 40 to Rs 50.
  • For urban areas, the charges remain unchanged. The minimum account balance is also the same as the customers in the metro cities.

The State Bank of India, in a recent amendment, has revised the minimum account balance for its savings accounts. It has also revised the penalty for non-maintenance of minimum balance. The good news is, the minimum account balance change has been changed from Rs 5,000 to Rs 3,000 in the savings accounts in urban areas.

Incidentally, the average balance for SBI savings account holders in metro cities has also come down to what those in urban areas are supposed to maintain. Meanwhile, SBI has also revised the penalties that account holders are supposed to pay for failing to maintain the stipulated balance in their savings account. Customers will also have to pay GST over and above the fine they have incurred. The new minimum balance rules are likely to be effective from October 1.

Things that you need to know:

  • The change in minimum balance came after SBI analysed the customer feedback it received over charges for non-maintenance of minimum balance account. SBI had brought back penalties over non-maintenance of MAB in April.
  • SBI Managing Director (national banking group), Rajnish Kumar, stated that the bank would consider the comments from its customers and take an informed decision.
  • If the average balance at the end of the month is between Rs 1,499 to Rs 750 then the penalty will be Rs 40 to Rs 50. If the account balance is anywhere between Rs 2,999 and Rs 1,500,then the account holder will have to pay Rs 30 as penalty.
  • For urban areas, the charges remain unchanged. The minimum account balance is also the same as the customers in the metro cities. 
  • The minimum account balance for semi-urban areas has been unchanged at Rs 2,000. The penalties for non-maintenance have been slashed for the group. If the account balance is between Rs 1,999 and Rs 1,000, the customers have to pay a fine of Rs 20, which has been reduced from Rs 25 before. The charges will be Rs 30 if the MAB is between Rs 999 and Rs 500. This has reduced from Rs 50. If the MAB is below Rs 500, they will now have to pay Rs 40, instead of Rs 75.
  • For rural areas, the MAB continues to be Rs 1,000. The penalties also remain unchanged. SBI has kept the penalties for rural customers similar to that of its semi-urban clients, at Rs 20 for MAB between Rs 999 and Rs 500, Rs 30 for MAB between Rs 499 and Rs 250, and Rs 40 for MAB at Rs 249 or less.
  • The SBI has also exempted certain groups from maintaining a minimum account balance. These include financial inclusion accounts, basic savings bank deposit accounts, small Accounts, Phela Kadam and Pheli Udaan accounts, minors till the age of 18 years, and all pensioners including recipients of social welfare benefits.
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