SBI cut down minimum balance charges by up to 75%

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.

Mumbai: Facing backlash from its customers, the State Bank of India (SBI) has chose to substantially reduce charges for non-maintenance of average minimum balance in savings account. Truly, This decision follows severe criticism that the bank received a huge income of Rs 1,771 crore in just eight months from clients who failed to maintain balance in their bank accounts.

The charges for non-maintenance of average minimum balance in metro and urban centres have been reduced from Rs 50 per month plus GST to Rs 15 per month plus GST. So also for Semi-Urban and Rural centers, the charges have been reduced from Rs 40 consistently to Rs 12 and Rs 10 GST charges will be material far beyond the rates indicated previously.

SBI claims the reduction is expected to benefit 250 million customers. "The bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfilling customers' expectations", SBI managing director (retail and digital banking) P.K. Gupta said.

Including SBI, other banks across the country also charge penalties if there are not enough funds in the account.

Even though the reply was furnished by the state-run lender on February 28, 2018, the bank today steeply reduced the penal charges on not maintaining the minimum balance. The minimum balance in metro and urban cities are Rs.3000.

According to the release, the reduced rates will benefit 25 crore customers. But it later revised it downwards in October based on feedback from stakeholders. Besides, students aged below 21 years are also not required to maintain minimum balance.

As on September 30, 2017, SBI has a deposit base of Rs 26.23 lakh crore with CASA ratio of 43.81% and advances of Rs 18.92 lakh crore.

The penalty for non-maintenance of MAB is calculated on a staggered basis - depending on the shortfall - so be sure to go through your bank's website for the relevant details.

(Copyright © 2015. All Rights Reserved.)
 
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