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SBI slashes charges for non-maintenance of average minimum balance

Nikhat Hetavkar/Mumbai 14 Mar 18 | 12:44 AM

FILE PHOTO: State Bank of India

Country's largest lender, State Bank of India (SBI), has cut charges for non-maintenance of average minimum balance (AMB) for customers, following stakeholders' feedback.

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The monthly charges, exclusive of the goods and services tax (GST), have been reduced to Rs 15 from Rs 50 in metro and urban centres and Rs 12 and Rs 10 from Rs 40 for semi-urban and rural centres. The revised charges will be effective from April 01, 2018. These charges will be applicable if a customer fails to maintain a minimum monthly balance specified by the bank.  

"We have reduced these charges taking into account the feedbacks and sentiments of our customers. Our bank has always focused on keeping the interests of its customers first and this is one of our many efforts towards fulfiling customer expectations," said P K Gupta, managing director — retail & digital banking, SBI.

ALSO READ: SBI shuts 4.11 mn savings accounts for not keeping average monthly balance

The bank had substantially hiked its minimum balance requirement, effective April last year, which saw backlash from the bank's customers. The bank later reduced the AMB requirement to Rs 3,000 from the earlier Rs 5,000, effective October 2017.

SBI has 410 million savings accounts, out of which 160 million accounts are under the Pradhan Mantri Jan-Dhan Yojana or Basic Savings Bank Deposit Account (BSBD), and of pensioner /minors/social security benefit holders, which were already exempted. In addition, students up to the age of 21 years are also exempted. The revision in AMB would benefit 250 million customers, said the bank.

The bank also added that customers always have the option of converting the regular savings bank account to BSBD account, free of charge, in case he/she desires to avail basic savings bank facilities without being subject to maintenance of AMB. 

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