SBI REDUCES MONTHLY AVERAGE BALANCE from Rs 5,000 to Rs 3,000 W.E.F. 01/10/2017

SBI REDUCES MONTHLY AVERAGE BALANCE from Rs 5,000 to Rs 3,000 W.E.F. 01/10/2017

The largest public sector bank had levied penalty for not maintaining minimum balance in its savings accounts starting April 1,2017

The Jan Dhan and Basic Savings Bank Deposit Accounts were already exempt from this.

  For non-maintenance of minimum average balance (MAB), the charges have been revised downward, ranging from 20% to 50% across all population groups and categories. The new charges at semi-urban and rural centres range from Rs 20 to Rs 40, and at urban and metro centres from Rs 30 to Rs 50. The revised MAB requirement and charges will become applicable from the month of October 2017. The above revision will benefit 5 crore account holders.

The Monthly Average Balance (MAB) in Savings Bank Accounts to be revised w.e.f. 01/10/2017. For more details visit: https://t.co/lGxM6RRO37 pic.twitter.com/YeM9VPHL2T

— State Bank of India (@TheOfficialSBI) September 25, 2017

IMPORTANT ANNOUNCEMENT: Savings Bank Account Closure Charges Revised with effect from 1st October 2017. pic.twitter.com/Y9bbBTZcoD

— State Bank of India (@TheOfficialSBI) September 26, 2017

The below categories of Savings Bank Accounts are excluded from MAB requirement w.e.f. 01/10/2017. More: https://t.co/lGxM6S9prH pic.twitter.com/PPLoTyHUJF

— State Bank of India (@TheOfficialSBI) September 25, 2017

The country’s largest lender State Bank of India on Monday lowered the minimum average monthly balance (MAB) requirement in a savings account to ₹3,000 from ₹5,000, in addition to revising downwards penalties for non-adherence.

The revised MAB requirement and charges will become applicable from October, the bank said in a statement.

The public sector lender also decided to exempt pensioners, beneficiaries of social benefits from government and minors from the requirement of minimum balance in savings account.

In April, the bank had re-introduced MAB and charges for non-maintenance of balance after a gap of five years.

The below categories of Savings Bank Accounts are excluded from MAB requirement w.e.f. 01/10/2017. More: https://t.co/lGxM6S9prH pic.twitter.com/PPLoTyHUJF

— State Bank of India (@TheOfficialSBI) September 25, 2017

In metropolitan areas the minimum balance requirement was ₹5,000. For urban and semi-urban branches, it was fixed at ₹3,000 and ₹2,000, respectively, and for rural branches it was ₹1,000.

Now, the charges at semi-urban and rural centres range from ₹20 to ₹40 and at urban and metro centres from ₹30 to ₹50, the bank said.

Earlier, in the metros, the bank was charging ₹100 plus GST if the balance fell below 75 % of the MAB of ₹5,000. If the shortfall was 50% or less, the penalty charge was ₹50 plus GST.

Any shortfall in maintaining minimum average balance in rural areas was attracting a penalty in the range of ₹20 to ₹50 plus GST.

The bank reiterated that basic savings bank deposit and PM’s Jan-Dhan accounts are not required to maintain the minimum balance. The lender has 42 crore savings bank accounts of which 13 crore belong to this category.

“It has now been decided to exempt the pensioners, beneficiaries of social benefits from government and accounts of minors. The revision is likely to benefit another 5 crore account holders,” the bank said.




info and twitter handle courtesy : SBI
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