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SBI lowers minimum account balance to Rs 3,000: A 5-point guide on how it works

LiveMint logoLiveMint 26-09-2017 PTI

New Delhi: The State Bank of India on Monday lowered the minimum average monthly balance (MAB) requirement in a savings account to Rs 3,000 from Rs 5,000 and also revised downwards penalties for non-adherence.

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

In April, the bank had re-introduced MAB and charges for non-maintenance of balance after a gap of five years. In metropolitan areas the minimum balance requirement was Rs 5,000.

For urban and semi-urban branches, it was fixed at Rs 3,000 and Rs 2,000, respectively, and for rural branches it was Rs 1,000.

Here is a five-point guide for customers to understand what the country’s largest lender reducing minimum average monthly balance requirements means for them:

■ 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.

■ SBI has also revised downwards the penalty for non-maintenance of MAB. “For non-maintenance of MAB, the charges have also been revised downwards ranging from 20-50 per cent across all population groups and categories,” the bank said.

■ Now, the 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 bank said.

Saubhagya scheme: All you need to know

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

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

■ SBI reiterated that basic savings bank deposit and PM’s Jan-Dhan accounts are not required to maintain the minimum balance.

■ SBI has 42 crore savings bank accounts of which 13 crore belong to this category.

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