SBI closes 41.2L SB accounts for not keeping minimum balance

SBI cuts down charges on minimum balance maintenance

SBI cuts down charges on minimum balance maintenance

In April 2016, the SBI had re-introduced the penal charges on non-maintenance of average monthly balance after a gap of five years.

Public lender State Bank of India (SBI) has reduced charges for the non-maintenance of Average Monthly Balance (AMB) in savings accounts, effective April 01, 2018.

The charges for non-maintenance of AMB has been trimmed to Rs 15 per month plus GST from the earlier Rs 50 per month plus GST in metro and urban areas, as per a release by SBI. Similarly, for their "semi-urban" and "rural" centres, the charges, which are now Rs 40 plus GST per month, will be slashed to Rs 12 and Rs 10 per month plus GST respectively. The move will benefit 25 crore customers.

At present, you have to maintain the minimum balance of Rs. 3000 in metro cities in your account. "SBI also offers its customers options to shift from regular savings bank account to basic savings account on which no charges are levied".

The country's largest bank has 41 crore savings bank accounts.

Applicable goods and service tax (GST) is added to the charges. According to the latest information, customers will not have to pay more than 15 rupees plus GST for the penalty. The decision, SBI said, was taken keeping in view the feedback received from various stakeholders. The charges at rural centres and semi-urban were also changed to Rs 20-40 from Rs 25-75.

Later in October, it had revised down the charges to some extent. This penalty was conveyed down to Rs 30-50.

Jan Dhan Yojana accounts, basic savings bank deposits accounts (BSBD), pensioners, beneficiaries of social benefits from the government and accounts of minors are exempted from complying with the minimum balance requirement. In addition, students upto the age of 21 years are also exempted.

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.

SBI reported a net loss of Rs 2,416 crore for the December quarter as it had to make provisions for rising bad loans.

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