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SBI Cuts Charges For Not Maintaining Minimum Balance In Savings Accounts

NDTV logo NDTV 13-03-2018 NDTV Profit Team

State Bank of India (SBI) on Tuesday lowered its charges for non-maintenance of average minimum balance in its savings accounts by up to 75 per cent. SBI currently charges a penalty for non-compliance with its average monthly balance rules depending on the type of branch and degree of shortfall. India's largest bank SBI said the revised charges will take effect from April 1, 2018 and the move will benefit 25 crore customers. The minimum balance charges were reduced "keeping in view the feedback from various stakeholders", SBI said in a press release.

From April 1, 2018, SBI said it will charge a maximum of Rs 15 plus GST for a month for non-maintenance of average monthly balance (AMB) in a savings bank account held in its metro and urban branches. SBI offers bank accounts in four categories of branches - metro, urban, semi-urban and rural.

For savings bank accounts held in its semi-urban and rural branches, SBI has reduced the charges from a maximum of Rs 40 per month plus GST to a maximum of Rs 12 and Rs 10 plus GST, respectively, the bank said in its statement.

Previously, SBI charged a charge ranging from Rs 20 to Rs 50 plus GST for non-maintenance of the minimum required balance in a savings bank account in a month.

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"We have reduced these charges taking into account the feedbacks and sentiments of our customers. Bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customer expectations," said P K Gupta, MD-retail and digital banking at SBI.

"Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied," Mr Gupta added. SBI's Basic Savings Bank Deposit accounts or BSBD account is among the types of account offered by the bank exempt from the minimum balance rules.

SBI also said its customer has the option of converting a regular savings account held with the bank to a basic savings bank (BSBD) account free of charge "in case he desires to avail basic savings bank facilities without being subject to maintenance of AMB".

SBI explained the proposed charges for non-maintenance of average monthly balance across its branches:

Metro and urban (AMB Rs. 3000/-)Existing charges p.m.Proposed charges p.m.
Shortfall Rs. 30/- +GSTRs. 10/- +GST
Shortfall > 50 - 75%Rs. 40/- +GSTRs. 12/- +GST
Shortfall > 75%Rs. 50/- +GSTRs. 15/- +GST
Semi-urban (AMB Rs. 2000/-)  
Shortfall Rs. 20/- +GSTRs 7.50 +GST
Shortfall > 50 – 75%Rs. 30/- +GSTRs 10.00 +GST
Shortfall > 75%Rs. 40/- +GSTRs.12.00+GST
Rural (AMB Rs. 1,000/-)  
Shortfall Rs. 20/- +GSTRs 5.00 + GST
Shortfall > 50 - 75%Rs. 30/- +GSTRs 7.50 + GST
Shortfall > 75%Rs. 40/- +GSTRs 10.00 + GST

SBI has a network of 22,900 branches and 58,916 ATMs in the country.

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