Diwali gift to SBI account holders: Reduction in the limit of minimum balance

Diwali gift to SBI account holders: Reduction in the limit of minimum balance


SBI reduces minimum balance: Here's how much you need in savings account to avoid penalty

This change in minimum balance under MAB rules came within days of SBI mentioning that it was analysing the customer feedback it received over charges for non-maintenance of minimum account balance.

The State Bank of India revised the minimum account balance for its savings accounts, as well as the penalties for non-maintenance of minimum balance, on Monday. The major change has been made with respect to savings accounts in metro cities, where SBI account holders will now have to maintain a monthly average balance (MAB) of Rs 3,000, instead of Rs 5,000.

With this, the average balance for SBI savings account holders in metro cities has come down to what those in urban areas are supposed to maintain. The biggest lender in the country has also revised the penalties that account holders are supposed to pay for failing to maintain the stipulated balance in their savings accounts. Notably, customers still have to pay GST over and above the fine they have incurred. The new minimum balance rules will be effective from October 1.

This change in minimum balance under MAB rules came within days of SBI mentioning that it was analysing the customer feedback it received over charges for non-maintenance of minimum account balance. India's biggest bank had brought back penalties over non-maintenance of MAB in April this earlier this year.

Rajnish Kumar, SBI Managing Director (national banking group), had stated that the bank would consider the comments from its customers in this matter and take an informed decision.

Here's a look at what monthly average balances SBI customers will have to pay, depending on their region, and what are the penalties for failing to do so:

Metro

The SBI customers in metro cities of India will have to maintain at least a sum of Rs 3,000 as monthly average balance in their savings account, as opposed to Rs 5,000. If MAB falls between Rs 2,999 and Rs 1,500, then the account holder will have to pay Rs 30 as penalty. Whereas, if the average balance at the end of the month comes out to be anywhere from Rs 1,499 to Rs 750 then the penalty for non-maintenance of MAB will be Rs 40, and  Rs 50 if the MAB is below Rs 750. Earlier, the penalties for these three stages were Rs 50, Rs 75 and Rs 100 respectively.

Urban

The MAB for urban SBI customers remains unchanged, as does the penalty for its non-maintenance. SBI account holders in urban regions of the country will have to maintain Rs 3,000 as monthly average balance, as before. This is same to those for metro city SBI customers. The penalties and conditions for urban area customers will also be the same as SBI clientele from metro cities.


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