Published: Tue, March 13, 2018
Money | By Armando Alvarado

SBI reduced minimum balance limit for savings account, effective on April 1

SBI reduced minimum balance limit for savings account, effective on April 1

India's largest lender had started charging depositors the penalty on April 1, 2017. 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. Similarly for semi-urban and rural centres the charges have been reduced from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST respectively.

Now, as per new notification, penalty of failing to maintain the average monthly balance has been reduced to Rs 15 (urban), Rs 12 (semi-urban) and Rs 10 (rural) plus GST. K. Gupta said, "We have decreased these charges taking into account the feedback and viewpoints of our customers". State Bank of India has given a relief to its over 25 crore savings account holders by reducing the charges for AMB by 75 percent. The above revision in AMB will benefit 25 crore customers.

If you are not an SBI customer, you will have to continue to be vigilant about the average balance in your bank account - unless it is a zero balance account, like a salary account and the financial inclusion accounts.

Confused about how the monthly/quarterly minimum average balance is calculated?

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This choice takes extreme feedback that the bank earned strong pay of Rs 1,771 crore in only 8 months from contributors who neglected to keep up the balance in their bank accounts.

Shifting to BSBD account is even more convenient and flexible, because there is no charges levied by SBI on them. The rate of interest is same as savings bank account. Of these, 16 crore accounts are under the Pradhan Mantri Jan Dhan Yojna, BSBD, pensioners and minors, which are all exempt from the penalty for not maintaining the minimum balance.

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. Besides, students aged below 21 years are also not required to maintain minimum balance. That's well above SBI's minimum MAB requirement, despite having just Rs 2,000 in his account for most part of the month.

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