SBI minimum account balance penalty relaxed: All you need to know

SBI minimum account balance penalty relaxed: All you need to know

India's largest lender bank State Bank of India reduced its charges on non-maintenance of Average Monthly Balance (AMB) in savings accounts by almost 75 percent.

The new charges are applicable from 1 April. The decision comes in view of the feedback from the various users.

After a revision previous year, customers from urban centres are required to maintain a balance of Rs 3,000, while it is Rs 2,000 and Rs 1,000 for semi-urban and rural centres respectively.

In semi-urban areas, the three penalties will be Rs 7.50 instead of Rs 20, Rs 10 instead of Rs 30 and Rs 12 instead of Rs 40.

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The charges for non-maintenance of AMB has been trimmed to Rs 15 per month plus GST from the earlier Rs 50 per month plus GST in metro and urban areas, as per a release by SBI. SBI has 41 crore savings bank accounts out of which 16 crore accounts are either under Pradhan Mantri Jan Dhan Yojana or are basic savings bank accounts. "Bank also offers its customers to shift from regular savings bank account to BSBD account on which no charges are levied", Indian Express quoted PK Gupta, MD - Retail & Digital Banking, SBI, about the reduction of charges.

"When an SBI customer uses a debit card at some other bank ATM, then SBI has to pay Rs 17 to the bank". In the big cities, account holders have to keep at least 5,000 rupees, account holders in urban areas, 3,000 rupees, account holders in small towns and Rs. 1,000 in rural areas to keep a minimum amount of 1,000 rupees. The charges at semi-urban and rural centres were also revised to Rs 20-40 from Rs 25-75.

SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. In addition, students upto the age of 21 years are also exempted. He added that depositors had the option to convert their regular savings accounts to basic savings deposit accounts, which do not fine holders if they do not maintain a minimum balance every month. My outgo on the ATM card itself is Rs 1,500 crore annually. Within a particular category, the bank levies charges depending on the shortfall.

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