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SBI Decreases Charges up to 75% For Not Maintaining of Minimum Balance

SBI Decreases Charges up to 75% For Not Maintaining of Minimum Balance

In a move that will potentially benefit 25 crore of its customers, State Bank of India (SBI) announced that it will be substantially reducing charges for the non-maintenance of Average Monthly Balance (AMB) in savings account, starting April 1, 2018. The rates of monthly average balance is Rs 3,000 for metros, Rs 2,000 for semi-urban areas and Rs 1,000 for rural areas. There are different charges for Metro & Urban, semi-urban and rural villages with an additional tax of GST.

The charges for non-maintenance of average minimum balance (AMB) for customers in metro and urban centres have been reduced from a maximum of Rs 50 per month plus GST to Rs 15 per month plus GST.

‎"We have reduced these charges taking into account the feedbacks and sentiments of our customers".

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

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

SBI collected Rs1,771.67 crore from customers on account of non-maintenance of AMB between April and November 2017, according to the finance ministry's answer in Lok Sabha on 29 December. SBI said that this decision is taken on the basis of responses received from all stakeholders. This means that the SBI has reduced the penalty for the balance sheet in the savings account. Let's assume he had a balance of Rs 10,000 in his savings account on February 1, but withdrew Rs 8,000 on Feb 8. Within a particular category, the bank levies charges depending on the shortfall. If the customer already has a Savings Bank Account, the same will have to be closed within 30 days of opening a BSBD account. He added that depositors had the option to convert their regular savings accounts to basic savings deposit accounts, which do not fine holders if they do not maintain a minimum balance every month. Also, accounts holders under the age of 21 were exempted. That's well above SBI's minimum MAB requirement, despite having just Rs 2,000 in his account for most part of the month.