Public lender State Bank of India (SBI) has reduced charges for the non-maintenance of Average Monthly Balance (AMB) in savings accounts, effective April 01, 2018. The new rates will come to effect from April 1, 2018.
Currently, the customers of their metro and urban centres are liable to pay a maximum monthly penalty of Rs 50 plus GST, for a failure to maintain the AMB.
For semi-urban and rural centres, the charges have been reduced from Rs 40 per month plus GST to Rs 12 and Rs 10 per month plus GST, respectively, the bank said in a release.
GST charges will be applicable over and above the rates mentioned above.
Between April and November 2017, the bank had netted a windfall of Rs 1,771.67 crore, more than its second quarter profit, from customers for non-maintenance of minimum balance, according to the finance ministry data. Both these accounts do not have minimum balance requirements.
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Later in October, it had revised down the charges to some extent.
It slashed service charges for non-maintenance of AMB by 20-50%.
SBI Minimum Balance Charges for SB Accounts decreased. If you maintain a minimum balance of less than 50% in metro cities, at present you have to give 30 rupees plus GST of 5.4 rupees.
Of the 41 crore savings accounts with SBI, 16 crore accounts under PMJDY / BSBD and of pensioner/minors/social security benefit holders were already exempted from the feature. Besides, students aged below 21 years are also not required to maintain minimum balance. The decision will benefit over 25 crore customers. "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.
Public sector banks (PSBs) are reeling under bad loans.
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.