SBI reduces charges for non-maintenance of balance in in savings accounts

State Bank of India- File

State Bank of India- File

Tuesday reduced charges for non-maintenance of average minimum balance (AMB) in savings accounts by up to 75 per cent.

The new charges are applicable from 1 April. SBI customers from urban centres are required to maintain MAB of Rs 3,000, while the same for semi-urban and rural centres stands at Rs 2,000 and Rs 1,000 respectively. Likewise, for Rural centres and Semi-Urban customers, the charges have been cut from Rs 40 every month to Rs 12.

Now after applying the new rule from 1 April for SBI customers in metro and urban areas, there will be a penalty of Rs 15 penalty and at the same time, for the semi-urban and rural areas, the penalty has been reduced from Rs 40 per GST to Rs 12 and Rs 10 plus GST. K. Gupta said, "We have decreased these charges taking into account the feedback and viewpoints of our customers".

The bank is having now 41 crores savings bank accounts.

In a press conference, SBI said, the minimum charges were reduced based on the feedback received from various stakeholders.

In October past year, SBI had slashed service charges on not maintaining monthly average balance by a whopping 20-50%.

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According to media reports, this decision was taken following some criticism that the bank earned Rs 1,771 crore in just eight months from depositors who failed to maintain balance.

Shifting to BSBD account is even more convenient and flexible, because there is no charges levied by SBI on them.

The finance ministry data showed the bank charged Rs 1,771.67 crore from customers on account of non-maintenance of minimum average balance between April and November 2017.

The state-owned lender has around 410 million savings bank accounts, of which around 160 million are exempted from AMB requirement.

Gupta here reiterated that a customer always has the option of converting the regular savings bank account to a BSBD account free of charge, in case an individual wants to get basic savings bank facilities without being subject to the maintenance of the average minimum balance. In addition, students upto the age of 21 years are also exempted, it said in the release.

As on September 30, 2017, SBI has a deposit base of Rs 26.23 lakh crore with CASA ratio of 43.81% and advances of Rs 18.92 lakh crore.

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