Good news! SBI cuts charges for non-maintenance of minimum balance from April 1

The State Bank of India, on Tuesday morning, cut charges for non-maintenance of average minimum balance. The new charges will be applicable from April 1, 2018. India’s largest bank has specified different monthly average balances (MAB) for accounts and if the holder fails to maintain this balance, he is charged depending on the degree of shortfall. The decision was taken by the bank in view of the feedback from various stakeholders.

According to the last notification by the bank, the SBI customers holding savings bank accounts with the bank’s metro and urban branches were required to maintain a monthly balance of Rs 3000 from October 1. The customers in semi-urban SBI branches were required to maintain Rs 2000 monthly balance and the rural branch customers had to maintain Rs 1000 balance.

Now, the AMB for customers in Metro and Urban centres have been reduced from a maximum of Rs. 50/- p.m plus GST to Rs. 15/- p.m. plus GST. Similarly, for Semi-Urban and Rural centres the charges have been reduced from Rs. 40/- p.m plus GST to Rs. 12/- and Rs. 10/- p.m. plus GST respectively.

“We have reduced these charges taking into account the feedbacks and sentiments of our customers. Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations. Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied,” PK Gupta, MD – Retail & Digital Banking, SBI said, about the reduction of charges.

Currently, there are 41 crores Savings Bank accounts in SBI out of which 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted. Apart from this, the accounts of students upto 21 years of age are also exempted.

SBI believes that the decision to cut charges for non-maintenance of minimum balance will benefit as many as 25 crore customers.

The bank added that if the customer wants to avail basic savings bank facilities without being subject to maintenance of AMB, they can convert the regular savings bank account to Basic Savings Bank Account (BSBD account), free of charge.

State Bank of India