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SBI Mulling Over Revision Of Minimum Balance Amount, Penalty Charges

SBI Mulling Over Revision Of Minimum Balance Amount, Penalty Charges

In June 2017, the bank had changed minimum balance maintenance criteria citing loads of work on its staff and excess liquidity in banks in the aftermath of demonetisation on 8 November, 2016.

SBI is reviewing its minimum balance requirement following a finance ministry reports which showed that SBI collected Rs 1,771 crore during April-November 2017 as a penalty from customers for non-maintenance of monthly average balance in savings accounts. Customers will have to pay GST over and above the fine they have incurred.

Also, pensioners, beneficiaries of government schemes and minors are exempted from levy of minimum balance charges with effect from October 1.

According to ET sources, the bank is looking at bringing down the MAB to Rs 1,000 but is yet to take a call. The move comes after SBI faced all-round flak for earning Rs 1,771.67 crore, more than its second quarter profit, from customers for non-maintenance of monthly average balance in savings accounts in eight months of 2017-18.Currently, the bank has different monthly average balances (MAB) requirement for accounts held in different types of branches.

The bank subsequently lowered the MAB following criticism from the customers.

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So far, it requires its savings bank account holders to maintain certain minimum balance every month. The MAB for accounts from metro areas was set at Rs5,000 and those from urban areas at Rs3,000.

The MAB for semi-urban areas has been unchanged at Rs 2,000, but penalties for non-maintenance have been slashed for this group.

The State Bank of India (SBI) might announce the charges and the minimum balance requirement criteria again soon.

Less than Rs 500 - Rs 40 as fine. SBI's current minimum balance for urban areas is Rs 3,000, while for semi-urban and rural areas it is Rs 2,000 and Rs 1,000, respectively.

"The bank also clarified that customer always has the option of converting the regular savings bank account to Basic Savings Bank Deposit (BSBD) account, free of charge, in case he desires to avail basic savings bank facilities without being subject to maintain MAB".


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